Will Bury’S Price Elasticity Scenario

RUNNING HEAD: ASSIGNMENT #2 SCENARIO CONCEPT concession #2 Scenario Concept impart screen’s charge Elasticity Scenario Lisa R. Pepper University of Phoenix go forth Bury is facing some critical decisions regarding his invention. He believes he has a viable enterprise but is unsure how to stay on to achieve maximum total revenue. This paper provide keep the economic principals of demand, offer and snapshot to assess forget’s current position and recommend future actions that need to be taken. The goal of this assessment is to develop an action plan that provide enable get out to maximize total revenue. 2 respite products allow be used to estimate the elasticity for Will’s digital audio files. This elasticity leave behind be used to predict consumer reaction to set changes as substantially as the competition’s reaction to price changes. previous to estimating elasticity we will evaluate a hardly a(prenominal) choices Will i s facing regarding production options. Application of the six determinants of bring out indicates that Will is facing two generate related decisions (production possibilities) in the sound future. We will behave that Will is not maturation surplus technology that will expedite production further. He has already far surpassed current digitization methods with his youthful patent invention.

We will assume that no tender taxes and subsidies will make his supply roll. Since his machine is patented we will assume that no new competition will enter the market. Price expectations will rest constant altho ugh somewhat unknown at this point. The supp! ly curve may however be shifted by changes in alternative prices such as labor. Will needs to apportion his resources efficiently; currently he has no employees and is digitizing the books himself at a valuate of 500 pages per hour. Since he works fulltime we will assume that he is able to work on his project 2 hours severally night yielding on average 10 new books each week. Were he to pay an employee $10/hr he would...If you want to get a full essay, nine it on our website: BestEssayCheap.com

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