Business Proposal

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  • Date Submitted: 10/30/2011 05:57 PM
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Business Proposal

1. Readings

Read Ch. 24, 26, & 28–30 of Economics.
Read University of Phoenix Material: Will Bury’s Price Elasticity Scenario located on your student website.
Read University of Phoenix Material: Thomas Money Service Inc. Scenario located on your student website.

2. Nongraded Activities and Preparation

Listen to the Week Four podcast.

3. Individual Assignment: Week Four Quiz

• Complete the Week Four Quiz located on your student website.

4. Individual Assignment: Business Proposal

This week, you may choose from two different assignment options. Each option requires you to apply economic principles presented in Weeks One through Three. Your assignment will be reviewed by your peers and by your facilitator.

Option 1: 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-word business 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.

• Include rationale for the following questions:

o How will you increase revenue?

o How will you determine the profit-maximizing quantity?

o 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?

o What is your suggested mix of pricing and nonpricing strategies? Explain your answer.

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

o How will you increase product differentiation?

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

Format your business proposal consistent with APA guidelines.

Option 2: Existing Good or Service Business Proposal

• Select an existing good or service from the Will Bury’s Price Elasticity,...
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