Eco 561 Wk 4 Business Proposal Will Burry
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Business Proposal
University of Phoenix
Economics
ECO 561
Business Proposal
Today's technological world has decreased the amount of hard copy books, newspapers, and printed magazines. Though technology has taken over the economy on a massive level, consumers are still enjoying literacy within the technological realm. Will Bury is an entrepreneur inventor with an invention that will enable readers to enjoy their reading leisure on a heightened level with digital programs and synthetic voice that sounds more realistic than the current digitized digital reading applications.
Will Bury's dream of expanding his invention and offering it to the wider public means he will need to make some changes in his current business handlings and surroundings. Mr. Bury needs a added staffing and functional working environment to continue working on his latest digital invention.
Identification of market structure
Mr. Bury's current business endeavor is part of a monopolistic competition market structure. A monopolistic market structure is "characterized by a relatively large number of sellers producing differentiated products" (McConnell, Brue, & Flynn, 2009, p. 177). Bury's invention is categorized into the non-price competition strategy of the monopolistic market structure. A non-price competition structure best fits his business model because Mr. Bury is trying to distinguish his product from competing products based on his invention's design and workmanship. Such an approach as distinguishing one's product from the competition is referred to as product differentiation.
Assumptions regarding market structure and elasticity
The newly invented product can be viewed as an inelastic product based on the rule of price elasticity of demand. Price elasticity of demand "refers to the way prices change in relationship to the demand, or the way demand changes in relationship to pricing" ("What is Price Elasticity of Demand?," 2013, para. 1). Price...
University of Phoenix
Economics
ECO 561
Business Proposal
Today's technological world has decreased the amount of hard copy books, newspapers, and printed magazines. Though technology has taken over the economy on a massive level, consumers are still enjoying literacy within the technological realm. Will Bury is an entrepreneur inventor with an invention that will enable readers to enjoy their reading leisure on a heightened level with digital programs and synthetic voice that sounds more realistic than the current digitized digital reading applications.
Will Bury's dream of expanding his invention and offering it to the wider public means he will need to make some changes in his current business handlings and surroundings. Mr. Bury needs a added staffing and functional working environment to continue working on his latest digital invention.
Identification of market structure
Mr. Bury's current business endeavor is part of a monopolistic competition market structure. A monopolistic market structure is "characterized by a relatively large number of sellers producing differentiated products" (McConnell, Brue, & Flynn, 2009, p. 177). Bury's invention is categorized into the non-price competition strategy of the monopolistic market structure. A non-price competition structure best fits his business model because Mr. Bury is trying to distinguish his product from competing products based on his invention's design and workmanship. Such an approach as distinguishing one's product from the competition is referred to as product differentiation.
Assumptions regarding market structure and elasticity
The newly invented product can be viewed as an inelastic product based on the rule of price elasticity of demand. Price elasticity of demand "refers to the way prices change in relationship to the demand, or the way demand changes in relationship to pricing" ("What is Price Elasticity of Demand?," 2013, para. 1). Price...