1. Monopoly: For years, Tesla was the only company producing electric vehicles(EV). With a graph, show profit maximization quantity(q*) and price(p*) for Tesla.

2. Monopolistic competition: Now many of the other car manufacturing companies have started creating EVs. How q* and p* changes for Tesla with this new competition. Use a graph to explain.

134743369138. 5: Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year over the next five years. The machine will be depreciated straight-line to zero in 5 years. It will not require any changes in net working capital and is expected to be worth $1,000 in five years. A tax rate is 34%. The discount rate is 10%.
              Find NPV and IRR.

As an international management consultant, what advice would you give a foreign company looking to move operations to Brazil? Do you think Brazil holds the potential for future growth? As an investor, do you think the buy low mindset applies to Brazil? If not, what changes would you like to see before making any investments in the country?

QUESTION TWO [30]

2.1 Discuss the concept of price elasticity of demand. Include in your answer an explanation of the relationship of its key variables to the demand curve and the law of demand. (15)

2.2 Using relevant diagrams, explain how income elasticity of demand can help a business to evaluate the service it provides according to changes in demand and consumer income. (15)

General Information on these three question

1.    Why is GM abandoning monthly sales reporting?

2.      How does monthly sales reporting drive employee behavior? What are the negative behaviors resulting from monthly car sales reporting?

3.      How will the changes in sales reporting impact employee behavior? What are the expected positive and negative implications?

Suppose government put a tax on renting capital so that firms need to pay τ fraction of their capital rental expenses as a tax to government. Drive first-order conditions for capital and labor by solving firm’s maximization problem. What happens in labor, capital and financial markets in short run and long run? Explain in detail by showing the changes in the relevant markets.

Computational Intelligence Methods

ii) Describe the process that has been followed to implement a Multi-layer Perceptron for handwritten digit recognition as presented in the lecture (the code is included in the accompanying Jupyter Notebook ipynb file). Experiment by changing the network's architecture (number of neurons in hidden layer and number of hidden layers) and comment on how the accuracy of the network is affected by these changes.

Use a two country supply and demand diagram to illustrate how, starting from completely free trade, a tariff on wool blankets affects both the domestic and foreign markets for blankets. Label the important geometric areas in your diagram and explain how the tariff changes the consumer and producer surpluses in both countries as well as the well-being of other relevant groups.