d Give the source of your answers

Generally, we observe that the demand curve is downward sloping and that the price is inversely related to demand. In this example, as the price rises from $20 to $25, the quantity demanded will become less than 4000 units according to the law of demand to this extent there are less sales. This phenomenon can be explained by a number of facts.

Substitution effect- as the price of a product Increases, the substitutes of this product become relatively cheaper. Consumers tend to prefer cheaper commodity over the costlier one. This will lead to shift in the consumption pattern towards its substitutes hence decreasing it's demand. Then, as the price increases quantity demanded falls.

Number of uses of the commodity- some of the products can be put to multiple uses. Amongst the uses, some are more important while others are less important. When the price of the product goes higher, the consumers will purchase such goods only for more important uses and will withdraw its usage from less important ones. The demand can also fall in such a way resulting from an increase in price.

Direct proof:

Electricity can be put to multiple uses such as cooking, lighting, heating etc. The most important is lighting. When the price of electricity is lower, say $20 consumers will tend to use it for less important purposes such as cooking and heating. However, as the price goes up say up to $25, it will be be used most on more important uses ultimately leading to a fall in demand. Same is the case with other goods.

However, it is also true that the demand curve may not always show the same behavior. Sometimes, it may change in the direction of the change in price. Nevertheless, these are exceptional cases and the law of demand holds good in most of the cases.

(4) Consider the classic game of "Rock-Papcr-SciSSor Therc are two players and each chooses to form their hand in the shape of a rock, a piece of paper, or a scissor. The rules of the game are that "rock beats scissors", "scissors beats paper", but "paper beats rock'". Let the payoff to winning be a > O and the payoff to losing be 0. For simplicity, suppose it is played as a one-shot ganme (no repitition), and that if the two players choose the same straetegy, each receives (a) Depict this 2 player 3x3 normal-form game in a matrix. (b) Solve for the Nash Equilibrium.

1) Describe the vertical chain for biotechnology productions. What "make" decisions has Nucleon already made? What "buy" decisions has it already made? Evaluate these decisions.

2) Draw a decision tree for stage I/II/III

3) How would you go about evaluating which option to take using the decision tree?

4) What make or buy decisions confront Nucleon in this case? Are there any other options besides those mentioned in the case that Nucleon might explore?

5) What other factors must Nucleon consider before reaching a final decision? When all factors are taken together, what should Nucleon do? During this piece of the evaluation, see if you can identify where the following concepts appear

Specific assets

Leakages

Possible coordination costs

6) Which must come first? Long term strategy consideration or production strategy for CRP-I?

Alpine Tire Company has determined from road tests that the mean mileage of its main product is 50,000 miles with a standard deviation of 5,000 miles, and that the collected data are normally distributed. Alpine wishes to offer a warrantee providing free replacement for any new tire that fails before the guaranteed mileage.

a. If Alpine wishes to replace no more than 10% of the tires, what should the guarantee mileage be?

b. In addition, the data collected indicate that the normal distribution is a reasonable assumption. What is the probability that the tire mileage will exceed 50,500miles?