Mr. Burry

Mr. Will Bury is the developer of a proprietary technology to convert a printed text into a human like auto formatting gadget for reading. The technology is developing, patented ,and has access to copyrighted protection. His goal is to remain in a monopolist structure by creating barriers to entry (University of Phoenix, 2010). Although, he has not made as much money with his invention he has to compete with an opportunity cost, his full- time job‘s salary at $200,000 including benefits, truthfully to become a success. Elasticity is to determine the sensitivity of demand to change the price. This proposal will cover elasticity price, recommendations for increasing revenue, methods to achieving ideal production levels, ways to adjust to maximize profit using fixed and variable cost, and ways to reduce cost.

Recommendation to Increase Revenue

      Promoting products in a business to customers is a critical avenue to increase revenue. Advertising though social and mainstream media outlets are methods he can use to gain profit especially before others will be introduce into the market. The capital intensive is the large amount of money he will need and other financial resources to produce. The idea is make profit. Still, the elasticity price will inform him of the percentage changes he should expect in the quantity demand. The change occurs in the percentage price. For now, his revenue to increase marginal cost and Marginal profit (MC=MP) must reach an equilibrium.

      Differentiation is a second method to increase revenue. The economy is diverse all but few nationalities call the United States home and many do not speak English as their first language. It will not be long before an idea similar to Mr. Bury’s will reach the world of technology. By incorporating by-lingual books/texts this can help expand his quantity demand.

Achieve Production Levels

      Technology has changed the production process (Allen & Economy, 2000). To achieve production...