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A number of stores offer film developing as a service to their customers

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1. A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function: C(q) = 50+0.59 +0.08q”; and a marginal cost MC = 0.5 +0.169. 1. If the going rate for developing a roll of film is $8.50, is the industry in long-run equilibrium? If not, find the price associated with long-run equilibrium. 2. Suppose now that a new technology is developed which will reduce the cost of film developing by 25%. Assuming that the industry is in long-run equilibrium, how much would any one store be willing to pay to purchase this new technology?

2. Take one multi-national firm of your choice among: Alibaba, GE, Toshiba, Nestle, or LVMH. 2) Please explain the industrial diversification strategy of your company. Your company adopt i) related diversification strategy, or ii) unrelated diversification strategy? Please explain the reason why. (4 points) 3) Please explain the advantages and disadvantages of your diversification strategy above. Do you have any recommendation? (4 points) 4) Now, your company considers to outsource manufacturing to the individual supplier in emerging economies. What is the potential benefits and costs of outsourcing? (4 points)