Business Proposal
Business Proposal
Business Proposal
ECO/561
August 08, 2011
Abstract
Will Bury, an enterprising inventor, is convinced that soon everyone will be reading or listening to everything digitally, including books that have been mostly available in hard copy. He knows that there are books on CD, but these are relatively expensive and have been recorded using human readers. He also knows that there is technology that can transform the printed word into audio, but the sound is somewhat inhuman. Will plans on speeding up the transformation with a proprietary technology he has developed and patented. 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.
In addition, Will know that he has free access to books no longer under copyright protection, and he figures he can pay a royalty fee of $5 per title for copyrighted books that will greatly expand his catalog. So far, he has limited himself to English-language books but is working on a language translation option as well.
The purpose of this paper is to create a business proposal to improve the existing goods and services for Will Bury’s new product. In this paper the subject to discuss is profit-maximizing and increasing revenue. Marginal cost, marginal revenue, credit markets, and the unemployment rate are briefly covered. Additional sections will discuss pricing and non-pricing strategy, barriers to entry, product differentiation, and minimizing cost.
Business Proposal
Profit-Maximizing and Increasing Revenue
Profit-maximizing quantity is figured by determining if the product is considered price-elastic or in-elastic. If demand is elastic, a decrease in price will increase total revenue. Conversely, a price increase will decrease total revenue for a product that has in-elastic demand. Bury can create a revenue curve graph as additional sales at various prices create additional data. Bury
Business Proposal
ECO/561
August 08, 2011
Abstract
Will Bury, an enterprising inventor, is convinced that soon everyone will be reading or listening to everything digitally, including books that have been mostly available in hard copy. He knows that there are books on CD, but these are relatively expensive and have been recorded using human readers. He also knows that there is technology that can transform the printed word into audio, but the sound is somewhat inhuman. Will plans on speeding up the transformation with a proprietary technology he has developed and patented. 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.
In addition, Will know that he has free access to books no longer under copyright protection, and he figures he can pay a royalty fee of $5 per title for copyrighted books that will greatly expand his catalog. So far, he has limited himself to English-language books but is working on a language translation option as well.
The purpose of this paper is to create a business proposal to improve the existing goods and services for Will Bury’s new product. In this paper the subject to discuss is profit-maximizing and increasing revenue. Marginal cost, marginal revenue, credit markets, and the unemployment rate are briefly covered. Additional sections will discuss pricing and non-pricing strategy, barriers to entry, product differentiation, and minimizing cost.
Business Proposal
Profit-Maximizing and Increasing Revenue
Profit-maximizing quantity is figured by determining if the product is considered price-elastic or in-elastic. If demand is elastic, a decrease in price will increase total revenue. Conversely, a price increase will decrease total revenue for a product that has in-elastic demand. Bury can create a revenue curve graph as additional sales at various prices create additional data. Bury
References: Business Dictionary. (2011). Product Differentiation. Retrieved from http://www.businessdictionary.com/definition/product-differentiation.html Classic Economic Model. (2011). EconModel. Retrieved from http://www.econmodel.com/classic/terms/mc.htm McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, Problems, and Policies. Retrieved from http://ecampus.phoenix.edu/content/EbookLibrary2/content/eReader.sapx Pietersz, G. (2011). Marginal Revenue. Retrieved from http://moneyterms.co.uk/marginal-revenue