This week, your paper requires you to apply economic
principles presented in Weeks One through...

Question

This week, your paper requires you to apply economic
principles presented in Weeks One through Three. Your assignment will be
reviewed by your peers and by your facilitator.

New Good or
Service Business Proposal

Select a
new good or service for an existing business or a business that you want to
develop.

Write a 1,050- to 1,400-wordbusiness proposal
for your chosen good or service. Include assumptions about the elasticity of
demand and the market structure for the good or service. You might need to
create hypothetical data or collect real data to determine fixed and variable
costs. THIS IS AN
ECONOMICS course; the entire focus of your proposal must be economic. If its
marketing focused like most business proposals you will be disappointed in your
grade.

Answer, number[#1-#7]
and include rationale for the following questions. Make sure to use section
headings for each answer:

·
How will you increase revenue?As this is an economics course,
talk specifically about whether to RAISE price or LOWER price based on your
assessment of its elasticity of demand. DON’T discuss increased advertising,
coupons, or loyalty programs, etc.

·
How will you determine the profit-maximizing
quantity?Hint: think law
of diminishing returns and economies of scale

·
How could you use the concepts of marginal cost
and marginal revenue to maximize profit? What information do you need to
determine this? Without this information, how would you make a decision?

·
What is your suggested mix of pricing and non-pricing
strategies? What specifically do you suggest in terms of pric and non-price
tactics? Explain your answer.

·
Can you create or increase barriers to entry? If
so, how?

·
How will you increase product differentiation?

·
Are there other ways to minimize costs for the
product?

Format
your business proposal consistent with APA guidelines.
ECONOMICS: Write the paper base on economic principle. It must have Introduction, body#1-#7, Conclusion. Refrences.

Robert · Accepted Answer

INTRODUCTION
Imagine that a distant Uncle who has passed away recently left behind his entire estate in a hill town away from the city to me. As part of renovation the entire ground was dug up and a natural spring erupted from underground.  An analysis of the water shows that it has medicinal properties. This made me develop this spring into a commercial venture. So the good provided is - SPRINGWATER. This town is a tourist destination because of its scenic beauty, calm and pollution free, clean environment away from the bustling towns. It is used by tourists to relax as a weekend getaway for many working class families.  
The good for sale is a dip in the natural spring for a specified time period. 
Marginal cost and revenue concepts:
The costs involved in this are of three types. The sunk costs include those which cant be recovered- costs in terms of providing barricades, railings and other safety measures to ensure that the bathing area is safe and accident free for consumers. Fixed costs would include costs of maintenance ( lease payment in case this is given to a third party for maintenance) , costs of running the place in terms of electricity and other utility charges, costs of employees who help in billing and keeping track of the time spent by a customer in the water area. Any expenditure towards advertising and marketing are also fixed in nature as they do not vary with the no of customers I get. The variable costs are lower and include costs on facilities like provision of clean towels. The fixed costs are much higher than the variable costs.      
The market structure is a monopoly as there is no such rival product being offered in this town. This gives me a downward sloping demand curve, which is used to derive the marginal revenue curve, 
As a businessman my main objective would be to maximise profits. This entails a pricing strategy which requires equality between marginal revenue and marginal cost. Once I estimate my costs marginal costs refer to the incremental cost incurred on the next customer.

This week, your paper requires you to apply economic principles presented in Weeks One through Three. Your assignment will be reviewed by your peers and by your facilitator. New Good or Service...

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