ECO 561 Week 4 Business Proposal.
Week 4 ECO 561 Business Proposal
You will apply economic principles presented in Weeks One through Three in this week’s assignment. Your assignment will be reviewed by your peers and by your facilitator in week five and should be revised as necessary based on feedback as the first part of the final assignment in week six.
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ECO 561 Week 4 Business Proposal.
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Select a new, realistic good or service for an existing industry.
Write the economic analysis section of a business proposal. This will include statements that about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and variable costs.
Required Elements:
- Identify market structure
- Identify elasticity of the product (here you need to make up date showing demand and supply for three price points you will then graph them and then calculate the elasticity of Demand and the elasticity of supply using your first set of supply and demand points with a second of the three sets of supply and demand points you made up. You will also need to create a marginal cost and revenue matrix using made up numbers that correlate to your price points
- Include rationale for the following questions:
- How will pricing relate to elasticity of your product?
- How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?
- Besides your pricing decisions, what are your suggested non-pricing strategies? What non-pricing strategies will you use to increase barriers to entry?
- How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?
- Then specify a proposal to increase or decrease price based on the numbers and metrics you have created and include any non-pricing decisions you want acted on. The proposal should be no more than 750 words.
- Your proposal is consistent with APA guidelines
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