Question 2:

Suppose on 1 January 2023 a typical simple shirt towel sells for 10 Euros in France. Lots of firms from various countries can produce and sell such towels.
Thus competition is tough. Bursal Exports from Turkey is one such firm.	Suppose on 1 January 2023 1 Euro is worth 25 TL.			WORTH 25 points
Suppose on 1 January 2023 Bursal Exports cost structure per towel is as follows: 125TL raw materials, 75TL labor , 15 TL all other cost items like electricity etc
Thus each towel costs 215 TL to produce. Assuming costless transport,	when Bursal Exports sells a towel for 10 Euros in France it makes a profit of 35 TL
or 35/215=	0,16	profit rate.
Let us consider	Bursal Exports situation in November 2023 under various TL inflation and TL depreciation Scenarios
					TL inflation	Cost per shirt	TL depreciation	Revenue in TL	Profit in TL	Profit rate
					0,25	268,75	0,2	300	31,25	0,12
					0,25		0,25
					0,25		0,3
					0,35		0,3
					0,35		0,35
					0,35		0,4
a) FILL IN the above table and calculate the relevant cost,revenue profit and profit rates
b) Do you see a pattern? Explain the relationship, if any, between the TL inflation and TL depreciation rates versus Bursal Exports profit rate
c) Let us replace Bursal Exports with Renault and "simple towel" with "Renault Megane E-Tech". Would anything change? Briefly explain.