Interpreting financial results

Interpreting financial results






Final Business Proposal
Aracheal Ventress
Economics 561
April 20, 2014
Maria Hamideh Ramjerdi
Final Business Proposal
The digital world has created a market for producing products that are user-friendly, serves multi-purposes, has 24 hour accessibility, and lightweight to carry. Society is plugged in and a common desire is to have applications available at the click of a mouse. Because of this sense of urgency, Will Bury believes that, in the near future, most of the population will be reading or listening to everything digitally, including books that have been mostly available in hard copy. He has developed and patented technology that scans books into a digitizer. "This technology takes the printed word for text materials and creates a file with the option of reading it digitally or listening to it with a realistic synthetic voice" (Will Bury’s Price Elasticity Scenario, pg.1, 2014).
Will has a great idea and excellent technical skills but has a learning curve with the application of key economic principles that could help with the growth of his business. This paper will discuss some recommendations Will can utilize for success. I will discuss the product’s current market, elasticity of the product, pricing decisions in terms of marginal costs and marginal revenue, non-pricing strategies, and fixed and variable costs.
Market Structure
“Monopolistic competition is characterized by a relatively large number of sellers, differentiated products (often promoted by heavy advertising), and easy entry to and exit from the entry” (McConnell, C., Brue, S., & Flynn, S., 2009, pg. 223). This market is relatively large and populated by many small businesses that produce similar products. Entering into a monopolistic competition market is fairly easy. Surviving longer than a short run production in this market requires business owners to place emphasis on heavy advertisement about their product’s differentiation from the other competitors’...

Similar Essays