Assignment Business EconomicsCourse: EPGDMAnswer the following questions. ( 4*10 marks= 40 marks)1.You have been asked to produce a forecast for your company’s new product, electric car.Discuss the kind of information you would look for in order to make this forecast andalso bring out the significance of demand forecasting in your decision making process.2.Forey Inc. competes against many other firms in a industry. Over the last decade, severalfirms have entered this industry and, as consequences, Forey is earning a return oninvestment that roughly equals the interest rates. Furthermore, the four-firm concentrationratio and Herfindahl Hirschman index are both quite small. Based on this information,which market structure best characterizes the industry in which Forey competes? Explainthe characteristics this market structure and what happens to the Forey Inc’s profit in theshort-run and long-run.