ajaz_204_2009_lecture_14

ajaz_204_2009_lecture_14 - University of Toronto Department...

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University of Toronto Department of Economics ECO 204 2009 2010 Sayed Ajaz Hussain Lecture 14 1 Ajaz Hussain. Department of Economics. University of Toronto (St. George)
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HBS Case The Aluminum Industry in 1994 (Revised 2002) Ken Corts Director Rotman Commerce Data (password: quasifixed ) Ajaz Hussain. Department of Economics. University of Toronto (St. George) 2 Today
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Is primary Aluminum production an attractive industry? Is there excess capacity? If so, what effect would it have on pricing? Build the industry supply curve. What is the price of aluminum in 1993? Based on this figure and the supply curve how much aluminum should be produced? Is your answer close to the actual production? At the current price of aluminum, actual Western demand and actual production, will inventories rise or fall? What effect will this have on future aluminum prices? Many primary aluminum producers are state owned enterprises who operate (almost) without regard to prices. How does this affect the supply curve?.
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This note was uploaded on 05/02/2011 for the course ECO 204 taught by Professor Hussein during the Fall '08 term at University of Toronto.

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ajaz_204_2009_lecture_14 - University of Toronto Department...

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