Business Proposal Timothy Anderson ECO 561 Daniel Rowe July 16‚ 2012 Business Proposal A current issue with home health care and senior citizens is the need for medicine and food. In the current state of the economy with the rise and gas prices and the need of people to still commute‚ people have to figure out ways to get to and from pharmacies and grocery stores. In the economy two markets that will not fail in recession are discount retail food and medicine because people need both to
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had in the competitive market (UOP‚ 2014). The intent of this proposal is to provide a recommendation on how the company can increase revenue‚ maximize profits‚ suggest a mix of pricing and non-pricing strategies‚ create barriers to entry into the market‚ increase product differentiation‚ and minimize the cost for the product. Increasing Revenue In the scenario‚ Thomas Money Services has displayed a market structure of a monopolistic competition. In the monopolistic competition
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can increase revenue‚ achieve production levels‚ determine how costs can be attuned to maximize profits‚ suggest a mix of pricing and non-pricing strategies‚ and create barriers to entry into the market if possible. This proposal will also look into ways on how the company can increase product differentiation‚ and if there is other means to minimize the cost for the product. Increasing Revenue Because of the recent decrease in sales‚ TMS should first consider the marginal revenue and cost profit
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Maximizing Profits in Market Structures Paper Josie Vennable Axia College of University of Phoenix INTRODUCTION When economists analyze the production decisions of a firm‚ they take into account the structure of the market in which the firm is operating. The structure of the market is determined by four different market characteristics: the number and size of the firms in the market‚ the ease with which firms may enter and exit the market‚ the degree to which firms’ products
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Why is it that a profit maximizing businessman would always raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail. Elasticity and profit maximization behavior When facing an inelastic demand curve‚ a profit maximizing businessman would always raise price because increase in price will bring about increase in total revenue. On the other hand‚ when facing an elastic demand curve‚ he might
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increases‚ Boeing exhibits economies of scale. Quick Quiz: How does a competitive firm determine its profit-maximizing level of output? When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market? * When a competitive firm doubles the amount it sells‚ the price remains the same‚ so its total revenue doubles. * A profit-maximizing aggressive firm sets price equal to its minor cost. If price were above marginal cost‚ the firm could increase
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Principles of Marketing: Multiple choice questions 1. Which one of the following statements by a company president best reflects the marketing concepts? Pg 11 or 13 ____a. We have organized our business to make certain that customers get what they want. ____b. We believe that the marketing department must organize to sell what we produce ____c. Our company has organized an aggressive sales force to promote our products ____d. We try to produce only high-quality‚ technically
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Running head: PRICE ELASTICITY OF DEMAND Price Elasticity of Demand Team Paper University of Phoenix Price elasticity of Demand With the objective of increasing the company ’s revenue‚ we have been tasked by Hyundai Motors to determine if the company should increase or decrease the price of its Sport Utility Vehicle (SUV)‚ Santa Fe. We will use the price elasticity of demand concept to determine what actions should be taken. Additionally‚ we will determine the impact on demand for
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profit maximization The total revenue‚ TR‚ is the overall amount of all sources of a business’s income. It consists of total sales or profit‚ over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example‚ if a business decides to retail another product and the total revenue does increase‚ thus the marginal revenue would be greater than zero. However‚ if the business decides to sell another product and the marginal revenue is zero‚ then there would
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in the diagram below. Here there is no single level of output at which the firm can make profit because ATC is always above AR (Total cost will always be above total revenue). The profit maximizing level is MR=MC this is at output 0Q. The total revenue is output 0HGQ and the total cost 0BFQ with the size of the loss of the firm HBFG. The only way for the firm to make a profit is to charge each individual consumer at the exact price they are willing to pay
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