Question
This homework does not require you to use correct data and info about the companies and their products. It is ok to use fictive (assumed)
This homework does not require you to use correct data and info about the companies and their products. It is ok to use fictive (assumed) numbers since the main purpose with the homework is to practice to apply economical concepts from the course when reasoning and analysing about the chosen company. The work should be about FIVE pages of text (excluding graphs).
- a company you are interested in and pick 2 products it offers. Give a short description (maximum a half page)
2. Describe the company's situation on the factor market Motivate why it is acting on a specific market (e.g. monopolistic competition).
Explain what resources is it using for the production? Does it have comparative advantage, have to deal with trade barriers, in that case how and what are the effects? Does it interact on the capital market and how or why not?
3. Describe the company's situation on the product market
Make a graph of each product and how you think quantity sold it is depending on the price. Based on consumer theory, what assumptions do you make of the customers? Elasticity? Apply at least two methods from game theory and/or decision analysis when you describe a plan of how your company could improve its market position in the future.
4. Apply at least two methods from game theory and/or decision analysis when you describe a plan of how your company could improve its market position in the future.
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