Question 2 (15 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product. Imagine further that you or your consumers face an asymmetric information problem.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
b. (10 points) Please explain how you solved this problem.
Question 3 (11 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product.
a. (3 points) Think about your production process. Please explain the technology that you use in the production process.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product? Note that this question is NOT about how technology affects your production process, therefore, NOT about productivity, NOT about the cost structure.
Question 2 (15 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product. Imagine further that you or your consumers face an asymmetric information problem.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
b. (10 points) Please explain how you solved this problem.
Question 3 (11 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product.
a. (3 points) Think about your production process. Please explain the technology that you use in the production process.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product? Note that this question is NOT about how technology affects your production process, therefore, NOT about productivity, NOT about the cost structure.
