Revenue, Cost Concepts, and Market Structure Proposal
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- Date Submitted: 12/10/2011 06:33 PM
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Revenue, Cost Concepts, and Market Structure Proposal
Janet Lloyd
ECO 561 University of Phoenix Online
Dr. George Sharghi
April 3, 2011
Will Bury is an enterprising inventor that has created a proprietary technology that he has developed and patented in his garage. Will has taken the technology to take printed word from text materials and create a file with the option of reading books digitally or listening to them with a realistic synthetic voice. Will’s technical skills have outpaced his business acumen. He needs to decide whether he should quit his job that pays $200,000 a year plus benefits package, which his family is dependent on or devote his attention full time to his new business. Will needs to do research on who would want to acquire the books, how much he would charge, and how many employees if any to hire to help transform and scan them into his digitizer. Will, will need to increase revenue for the company in order to make it a reality. He will need to achieve ideal production levels, determine how fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs.
Increase revenue
With today’s internet and online university’s the need for digitized books has increased dramatically. More and more people are using technology and buying personal devices that can access the internet and download books to read for leisure. They can use these devices to read a book or listen to one while they are doing other things. Because Will entered the market with a new idea in technology and patented his idea he had a monopoly on the production of his digitizer. This creates a barrier that prohibits competitors from creating a substitute product and blocks competitors from entering the market. Because Will lives in a country that has a market system as an entrepreneur he can be assured that he can obtain and use economic resources to produce goods and sell them in his chosen market area (McConnell, Brue,...
Janet Lloyd
ECO 561 University of Phoenix Online
Dr. George Sharghi
April 3, 2011
Will Bury is an enterprising inventor that has created a proprietary technology that he has developed and patented in his garage. Will has taken the technology to take printed word from text materials and create a file with the option of reading books digitally or listening to them with a realistic synthetic voice. Will’s technical skills have outpaced his business acumen. He needs to decide whether he should quit his job that pays $200,000 a year plus benefits package, which his family is dependent on or devote his attention full time to his new business. Will needs to do research on who would want to acquire the books, how much he would charge, and how many employees if any to hire to help transform and scan them into his digitizer. Will, will need to increase revenue for the company in order to make it a reality. He will need to achieve ideal production levels, determine how fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs.
Increase revenue
With today’s internet and online university’s the need for digitized books has increased dramatically. More and more people are using technology and buying personal devices that can access the internet and download books to read for leisure. They can use these devices to read a book or listen to one while they are doing other things. Because Will entered the market with a new idea in technology and patented his idea he had a monopoly on the production of his digitizer. This creates a barrier that prohibits competitors from creating a substitute product and blocks competitors from entering the market. Because Will lives in a country that has a market system as an entrepreneur he can be assured that he can obtain and use economic resources to produce goods and sell them in his chosen market area (McConnell, Brue,...