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.

Option 2: Existing Good or Service Business
Proposal
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?

 

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

 

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

 

How will you increase product differentiation?

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