CASE STUDY

A small country named after its founding family; McLaren’s is a thinly populated
territory. It is the year 2101, and Marshall Eriksen of the Loony Toons Party is the elected
leader of the nation. After years of trial and error, the government comes to the
conclusion that markets should inherently be free from any intervention.

McLaren’s has a few monopolies in the market, like Scherbatsky Arms (which is the
leading ammunition manufacturer) and Stinson & Aldrin’s company, Legend Dairy (the
biggest dairy farms of the nation). The country exports these goods, contributing to 25%
of the world’s ammunition needs and 15% of electrical apparatus, along with 10% of the
world’s coal and 20% of cotton worldwide. Its imports are led by pulses (25%), diamonds
(30%) and oil (30%). It has good diplomatic ties with the rest of the world.

Its population of 1 million mostly comprises of people in the age group of 18–35-year-
olds. Since it is believed that any entrepreneur’s knowledge is subjective and dynamic,
the government does not believe in making detailed future predictions using mathematical
methods.

Crisis:

1. A technical malfunction was observed in Doofenshmirtz Evil Incorporated leading

to robots and machines developing sentience. This led to an AI takeover, with bots
disrupting human lives. Mr Eriksen set up a task force-’Mosby Boys’- comprising
scientists and policy makers to get the situation under control. Every day more and
more robots are developing human-like thinking capabilities and wish to dictate
McLaren’s and control its economic activities.
2. Under the influence of the bots, the McLaren’s Central Bank’s governor, Mr
Krabs, decided to raise the interest rates in the market.
3. In an effort to make the market fairer and more just, the AI decides on putting an
end to monopolies. They wish to promote perfect competition in the market.
4. Mr Krabs wishes to inquire about the future state of the market. He formulates a
committee of economists for the same. They have been assigned with the task to
give the most accurate predictions about how the decision to promote perfect
competition and raising interest rates will impact McLaren’s economic affairs.

As a member of the Mosby Boys suggest methods of stabilising the nation.