Select an existing good or service from the Will Bury’s Price Elasticity, Incremental Costs, or Thomas Money Service Inc. scenarios, or select an existing business with which you are familiar.
Write a 1,050- to 1,400-word business proposal to improve an existing good or service for your chosen company. Include assumptions about the elasticity of demand and the market structure for the company’s good or service. Analyze data to determine fixed and variable costs.
Include rationale for the following questions:
• How will you increase revenue?
• How will you determine the profit-maximizing quantity?
• 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?
• Can you create or increase barriers to entry? If so, how?
• How will you increase product differentiation?
• Are there other ways to minimize costs for the product?