Honda warns of rising costs, forecasts weaker annual profit TOKYO - Japan's Honda Motor on Friday forecast a 7% fall in annual earnings, instead of an expected rise, and warned that the long chip crunch and rising raw material costs were hurting profit, echoing comments from rivals Toyota and Nissan. Global automakers such as Honda have slashed production due a severe shortage of semiconductors, and now face what top automaker Toyota Motor called an "unprecedented" increase in costs as China's COVID-19 curbs have shuttered factories and the war in Ukraine further strains supply chains. "We are currently hoping to get the business on a recovery track in June," by using parts that are in stock. Senior Managing Executive Officer Yasuhide Mizuno told a post- earnings call. Mizuno said the company was hearing the lockdown situation in Shanghai was getting better and supply chain and logistics in the country were recovering up to about 80%. "Adding to uncertainty on supply and production, further increase in cost is expected," in the fiscal year ending March 2023, the company said in a statement. It said the impacts from the chip shortage and resurgence of COVID-19 were expected to remain, The company said it expects about 300 billion yen in costs to cover rising material, labour, and logistics expenses this year, a roughly 11% jump from last year. Source: REUTERS May 13, 2022 a)What type market structure does Honda Motor is operating? Briefly explain two characteristics of this market structure. (5 marks) b)What were the factors which effect the profit of Honda Motor?(3 marks) c)Why global automakers have to cut their productions?.6 marks) d)"The company said it expects about 300 billion yen in costs to cover rising material, labour, and logistics expenses this year, a roughly 11% jump from last year". From the statement determine the type of cost for material, labour and logistic expenses. .(3 marks) e)What are the profit earned by this market structure in short run