answered: Respond to each question fully and clearly. Be sure to addre

  

Respond to each question fully and clearly. Be sure to address all parts of each question. Most questions can be answered in 1-2 paragraphs.
1. Consider a recording studio that is considering expanding. This company currently records and advertises music and distributes CDs. Make a recommendation for this company, and explain
If the company believes they could benefit from economies of scale how should they expand? –
If the company believes they could benefit from economies of scope, how should they expand?
2. Suppose that you are a company looking to buy ad time on a TV network. Draw the supply and demand that this firm might face. Describe how this supply and demand relates to the supply and demand for viewing TV shows. Explain how the shadow price in that market relates to your diagram.
3. Consider two major changes in the ecosystem for digital products: The merger of Disney and Fox, and the creation of the Disney + Streaming service. Describe how these changes could impact the balance between the different parts of the supply chain in the TV/Film Markets. Do you think these changes caused creative destruction? What was destroyed? What new opportunities were created?

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