Business Proposal for Mr. Bury
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Business Proposal
ECO 561
June 13, 2011
University of Phoenix
Business Proposal for Mr. Bury
Staying competitive can be challenging in this current economic state and increasing business profits are critical to maintain a healthy business. In this paper the subject to discuss is Mr. Will Bury’s business proposal and his developed proprietary technology, which will allow him to convert printed text into a digital format for reading, or audio for listening. Also discussed are basic recommendations on how Mr. Bury can increase his revenues adjust fixed and variable cost in the effort to maximize profits, achieve ideal production levels, and reduce costs. Mr. Bury currently holds the patent on this digital and audio converting technology; therefore, his business by definition this business is considered a monopoly. His monopoly will create a barrier of entry to competitors, which will give Mr. Bury an advantage. Mr. Bury has been in business for a few years, but his business has not been very profitable nor does he understand how to market this new technology he has developed. As a result, he cannot leave his full-time job.
Mr. Bury is operating as s monopoly, so his demand curve is downward sloping; the quantity demand increased as the price decreased. Mr. Bury needs to determine the price elasticity of demand for this product. For example, when the price elasticity of demand of Mr. Bury developed proprietary technology is inelastic (|E d | < 1), the percentage change in quantity demanded is smaller than that in price. Hence, when the price is raised, the total revenue of producers rises, and vice versa. When the price elasticity of demand for Mr. Bury developed proprietary technology elastic (|E d | > 1), the percentage change in quantity demanded is greater than that in price. Hence, when the price is raised, the total revenue of producers falls, and vice versa (www.dictionary. reference.com).
Once he...
ECO 561
June 13, 2011
University of Phoenix
Business Proposal for Mr. Bury
Staying competitive can be challenging in this current economic state and increasing business profits are critical to maintain a healthy business. In this paper the subject to discuss is Mr. Will Bury’s business proposal and his developed proprietary technology, which will allow him to convert printed text into a digital format for reading, or audio for listening. Also discussed are basic recommendations on how Mr. Bury can increase his revenues adjust fixed and variable cost in the effort to maximize profits, achieve ideal production levels, and reduce costs. Mr. Bury currently holds the patent on this digital and audio converting technology; therefore, his business by definition this business is considered a monopoly. His monopoly will create a barrier of entry to competitors, which will give Mr. Bury an advantage. Mr. Bury has been in business for a few years, but his business has not been very profitable nor does he understand how to market this new technology he has developed. As a result, he cannot leave his full-time job.
Mr. Bury is operating as s monopoly, so his demand curve is downward sloping; the quantity demand increased as the price decreased. Mr. Bury needs to determine the price elasticity of demand for this product. For example, when the price elasticity of demand of Mr. Bury developed proprietary technology is inelastic (|E d | < 1), the percentage change in quantity demanded is smaller than that in price. Hence, when the price is raised, the total revenue of producers rises, and vice versa. When the price elasticity of demand for Mr. Bury developed proprietary technology elastic (|E d | > 1), the percentage change in quantity demanded is greater than that in price. Hence, when the price is raised, the total revenue of producers falls, and vice versa (www.dictionary. reference.com).
Once he...