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Hw_3__aluminum_industry_ProblemSet

Hw_3__aluminum_industry_ProblemSet - 2 ONLY THINK ABOUT...

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Homework Assignment #3: The Aluminum Industry Note – these are also study questions for our class discussion. Please be prepared to discuss these questions in class. 1. Aluminum industry competitive forces a. Briefly (1-2 sentences each) assess the competitive forces in the aluminum industry. b. Do the firms in this market appear to be “playing a Cournot game or a Bertrand game?” Briefly explain.
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Unformatted text preview: 2. ONLY THINK ABOUT THIS – YOU DO NOT NEED TO WRITE OUT AN ANSWER: Should Alusaf go ahead with the Hillside project? To answer this question, consider the projected costs of the project, and the price of aluminum. You may also want to make some assumptions about the future price of aluminum and a discount factor. Explain your decision, and make note of any assumptions....
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