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: ?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 nonpricing strategies?
What nonpricing 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?
