How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?

ECO 561/ ECO 561  Week 4 Individual Assignment Business Proposals Paper

ECO/561 Week 4 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.

Select a new, realistic good or service for an existing industry.

Write the economic analysis section of a business proposal. This will include statements 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
  • Include rationale for the following questions:

o   How will pricing relate to elasticity of your product?

o   How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?

o   Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?

o   How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?

  • No more than 1400 words
  • Your proposal is consistent with APA guidelines
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