Please read the case and the Alufaf supplement. In 400 to 500 words total, please answer the following questions:

1. Using the vocabulary of the class, how would you characterize competition in the aluminum industry?
2. Is the industry profitable at the time of the case? Why or why not?
3. Should Alusaf move forward with the proposed project? What numbers in the case would be helpful to inform your decision?
4. Part of Alusaf’s decision will depend on the long-term price of aluminum. What empirical approach would you follow to estimate a long-term price?

I’m not asking you to perform any calculations. We’ll do that in class. 

For question 1, I post a few lecture slides. Please use the word from the slides. Thank you.