Business Proposal

Business Proposal

This is the most important assignment in the entire class. You will apply economic principles presented in Weeks One through Three in this week’s assignment. Your assignment will be reviewed by your peers and by your facilitator in week five and should be revised as necessary based on feedback as the first part of the final assignment in week six. Select a new, realistic good or service for an existing industry. Develop a proposal based on that new good or service. This must be something new, or something that is new to a firm. The first paragraph of the proposal must state what the proposal is, what the key points of the proposal are, and how you will develop the proposal itself within the body of the paper.  The final paragraph must be a conclusion section that restates the key themes of your proposal, and most importantly, reinforces your case for why the proposal should be adopted. Write the economic analysis section of a business proposal – here you are applying the course concepts as they relate to the item you propose in the first paragraph of the proposal document.  This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and variable costs.
Required Elements:

• Cite the text, preferably in every paragraph of the proposal.
• Identify market structure
• Identify elasticity of the product
• Include rationale for the following questions:
  • How will pricing relate to elasticity of your product?
  • How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?
  • Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?
  • How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?
• No more than 1400 words
• Your proposal is consistent with APA guidelines