Review Group Problems G11-1: Exchange Rate Effect on Industry and G11-2: Exchange Rate Effects on Your Firm, located at the end of Chapter 11 in Managerial Economics: A Problem Solving Approach. Select one problem that relates to you and your current position in the work environment. Complete your response in 750-1,000 words. Support your response with personal experiences or examples.Alternate Scenario: If you are in an industry that does not deal with any foreign exchange transactions, use the petroleum industry for this assignment. Imagine that you work for a domestic oil refinery, and answer either question G11-1 or G11-2. You do not work for an oil producer, but rather for a refinery, which turns crude oil into many different petroleum products, from jet fuel to gasoline, which are then sold to world markets. You have the option of purchasing crude oil from U.S. sources or from various foreign countries. You must purchase crude oil in order to make products that you can sell in the United States or in other countries.Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.Textbook1. Managerial Economics: A Problem Solving ApproachRead Chapter 11 in Managerial Economics: A Problem Solving Approach.http://gcumedia.com/digital-resources/cengage/2015/managerial-economics_ebook_4e.php

On a blank 1- to 2-page Word document, address the following:Identify three examples of policy interventions available to government that can correct market failure. Examples of these policies :things like price floors, price ceilings, taxes, or permits..Explain how a government intervention such as those identified in A can affect supply and demand equilibrium. How can certain policies affect total surplus in a market equilibrium? In what ways can surplus be lost or gained in the presence of policy interventions? Provide examples from the textbook.3. Here is an idea of what I am looking for as answers in each of the above questions. You can use a bulleted or numbered list to talk about three examples of policy interventions. These are things like price floors, price ceilings, taxes, or permits. So, one of your items might look like this:Price Ceiling - A maximum price that is set for which a good cannot be sold above that price. An example would be rent controls.Your response to this will include a discussion of how different policies will affect market equilibrium, either by setting the price, or influencing supply or demand. For example, what is the impact of a tax on a supply or demand curve? How does it impact the price and quantity transacted? For this, you will be discussing consumer and producer surplus, and what will happen to total surplus if there is an intervention within the market. Start with a supply and demand market equilibrium. Identify the consumer and producer surplus.Introduce a policy intervention (tax, subsidy, price control, etc.)With your new market price after the policy intervention, what is the new consumer and producer surplus? Did one grow while another shrank? Did they both shrink? Why did that happen?Submit your assignment as a 1- to 2-page Word document