From a management perspective, formulate and explain your company's offensive or defensive strategy to improve its market

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From a management perspective, formulate and explain your company's offensive or defensive strategy to improve its market position in the next 3 years. Explain whether your company will be a first mover, a fast follower, or a late mover to ensure competitive advantage.

What are the numerical values for (b),(c) and (d) if I = 24, pX= 1, pY= 2? Now the price of mead rises to pY= 3. What income would Egbert need to be
able to reach his old utility level at the new prices? If he had this income, what quantities of each good would he consume at the new prices?Given his actual income, how much of each good will Egbert consume at the new prices?

What is the income effect of this price change?

What is the substitution effect of this price change?

Aensure to answer all questions

We will modify the game from above. Firm 2 now has the possibility of suing Firm 1 for violating lunar regolith preservation laws, after observing the first firm's choices. The lawsuit is costly for both parties, because it requires hiring a bunch of experts and stopping operations for a while. The lawsuit does not affect quantities or prices in the market. We'll model lawsuit costs as both firms having to pay an extra cost equal to one if there is a lawsuit. That will provide firm 2 with a means to "punish" firm 1 for overproducing. The game has three stages. In the first, firm 1 enters and chooses the quantity q1. In stage 2, firm 2 observes firm 1's choices as decides whether to start the lawsuit or not. At the last stage, firm 2 chooses its quantity produced q2 and "the market" determines the price given
the quantities produced by both firms.

In order to derive the subgame perfect Nash Equilibrium of this game, we proceed using backward induction. What should we look for when solving the second-to-last step (stage 2) using backward induction?
(a) q2 as a function of q1 and of whether the lawsuit is in place.
(b) Whether to create the lawsuit or not as a function of q1 and q2.
(c) q1 as a function of q2 and whether the lawsuit is in place.
(d) Whether to create the lawsuit or not as as a function of q1.

(e) q2 as a function of q1 only.

Suppose that a bank has following balance sheet structure: capital = $2,000, borrowed funds = $4,000, demand deposits = $14,000, loans to businesses = $15,000, and $4,000 is held in triple-A U.S. Treasury securities. The remaining amount is held at the Federal Reserve as reserves.

a) Show the bank's balance sheet. What is the bank's leverage ratio and define it?

b) Assume that the regulator mandates that bank should have at least 10% of capital against its risk-weighted assets, what is the bank's capital-to-assets ratio in this example and does it meet the required minimum level? Explain. [Hint: see definition of risk-weighting in the pre-lecture PP notes for Meeting # 10 and assume that reserves held at the central bank have the same risk weighing as Treasury securities].

c) Because of widening budget deficits and rising public borrowing, assume that credit rating for U.S. Treasury securities is lowered single- A (which carry 20% risk-weighting). How would it affect the capital-to-risk-weighted asset ratio and does the bank continue to meet the statutory requirement?

d) Suppose that customers withdraw $5,000 from their bank account. Please discuss various ways the bank could meet the withdrawals.

e) Assume that the central bank's policy interest rate is 4%, yield curve is flat (implying that monetary policy is "neutral"), bank's deposits are prices 1% below the policy interest rate and loans to businesses are priced at 4% above the deposit interest rate. Reserves at the central bank do not earn interest, but any borrowing from central bank and market is charged 2% premium above the policy interest rate. What is the bank's profitable and how the deposit withdrawal might impact profitability? Show your results.

Consider a firm with a production function given by q=187N, where q is the quantity produced and N is the number of workers hired. The firm sells its product in a competitive market, and the market price of its good is p=1.

The firm, however, is the only employer in the town where it operates, and hence it does not take the cost of labour as given. The inverse labour supply function in this town is given by w=45+0.04N2.

a) Solve for the profit-maximizing choice of N.

b) What will the wage be in this town?

c) Is the wage equal to, greater than, or less than p MPN (where p is the price of the good and MPN is the marginal product of labour)? Explain intuitively why this is the case in this setting.

d)If the government were to intervene in this market by setting a minimum wage, what would be the optimal level at which to set the minimum wage, if the government's objective is to increase employment as much as possible?

1: As a firm believer in the idea of sustainability, you were able to discover a cheap and efficient technology of recycling plastic bottles and single use bags into various products. To make this technology a profitable business opportunity, your firm collaborates with Adhuna Ltd. which is in the production of plastic helmets for construction purposes and plastic durables for households. Given this product range, your firm has the following two production opportunities: In the first case your estimated annual revenue is Rs. 2,50,000, and the production will cost you Rs. 80,000. In your second option, you expect to sell 2000 helmets every year at Rs. 100 each, and the average total cost of every helmet will be Rs.20. Required: a. Which production opportunity will you choose and why? b. If you do so, what will be your economic profit?

2: In line with the overall development of the health infrastructure, the state governments across the country provides a grant of Rs.6,00,000 each year to various laboratories across various organisations to conduct cancer research, where the costs of operating the research lab is Rs.3,00,000. Prima Donna, which is a leading alcohol beverage manufacturing company, offers funding of Rs. 8,00,000 each year to do beer research, but researching on beer would increase costs by Rs. 50,000. Required: 1. What is the opportunity cost of conducting cancer research? Break this into implicit and explicit costs. 2. What option will the department choose? What are the opportunity costs of this choice?

3: Twins Anna and Aayan are excited to be starting college next year. Anna is leaving home behind and heading to college in Bangalore while her brother Aayan is going to live at home and attend the local university. Up till now they have always used cash or gift cards received for holidays or birthdays to pay their expenses. Any savings they had was in the piggy bank in their rooms. Now that college is almost there, they realize that cash may not be the best option. Required: 1. Why is cash not always a good option? 2. What should Anna consider when picking a bank? What about Aayan? Do they have different needs?

4: Raghav runs a small pottery firm. He hires one helper at Rs.2,40,000 per year, pays annual rent of Rs. 50,000 for his shop, and materials cost Rs. 2,25,000 per year. Raghav invested Rs. 4,00,000 of his own funds in equipment (pottery wheels, kilns, and so forth) that could earn him Rs.40,000 per year if alternatively invested. Raghav has been offered Rs. 3,50,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth Rs.30,000 per year. Total annual revenue from pottery sales is Rs.7,20,000.

Required: 1. Explain explicit cost and implicit costs. Calculate accounting profits for Raghav's pottery. 2. What are economic profits? Calculate economic profits for Raghav's pottery.

Suppose a region's workforce of 14 million is initially split equally between two cities, X and Y. The urban utility curve peaks at 4 million workers, and beyond that point the slope is $3 per million workers. The initial equilibrium utility level is $60. Suppose city X experiences technological innovation that shifts its utility curve upward by $12. (a) Draw a pair of utility curves, one for X and one for Y, and label the positions immediately after the innovation (before any migration). You do not need to draw the utility curve to the left of 4 million population. (b) How do workers in each city Iespond to the innovation? What is the direction of migration flows. (c) What are the new equilibrium employment levels in city X and city Y, respectively?

1. a labour force can be broken down as follows:

- potential labour force participants: 40 million

- employed: 28 million

- not working, but actively seeking work: 1.5 million

-full-time students: 3 million

- retired: 4.9 million

- not working, discouraged because of lack of jobs: 600,000

-not working, household workers: 2 million

a) using the numbers above, calculate this economy's labour force participation rate

b) using these numbers above, calculate this economy's unemployment rate.

2. Consider two individuals, Carole and Mo, who each have a job opportunity that pays a wage of $20 per hour and allows them to choose the number of hours per week they'd like to work. Carole has stronger preferences for leisure than Mo. Ultimately, both Carole and Mo choose to work more than zero hours per week.

Draw (and upload) one graph that includes:

Carole and Mo's income-leisure constraint
Carole's utility-maximizing indifference curve (UC) and choice of leisure hours (LC)
Mo's utility-maximizing indifference curve (UM) and choice of leisure hours (LM)
[Note: There are multiple, though similar, ways to draw this graph. Focus on ensuring that the constraint, indifference curves and hours worked align with the information provided above.