ECO 561 Week 4 COMPLETE

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You will apply economic principles presented in Weeks One through Three in this week’s assignment. Your assignment will be reviewed 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.

 

Write the economic analysis section of a business proposal.  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:

  • 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

Click the Assignment Files tab to submit your assignment.

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Prepare a 350-700 word paper in APA format discussing this week’s objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.

 

Description

ECO 561 Week 4 COMPLETE

Apple iPhone Business Proposal

Apple launched its first phone known as the iPhone in 2008; the phone is designed to target people who wanted and needed to communicate and store information. The phone is design to provide a wireless Internet connection, music, and talk into one. The features of this phone include a 3.5 touch screen without the aid of a keyboard, using more than one finger to control the phone, and shifting the screen to view in different modes. The market for the phone was small in 2008; but today the phone has taken over. In this paper I will present a business proposal for the iPhone addressing the market structure and the elasticity of demand for the phone.

Market Structure

The Apple smartphone is part of an Oligopoly market; an independent market and has its own behaviors strategies. According to McConnell, Brue, and Flynn (2009), “Oligopoly, in contrast, blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among industry firms” (p. 222). Because Apple’s smartphone industry and competition was small, it needs to take control of the market by differentiating the iPhone from others phone in its category. Apple needs to develop a plan that will help them to target the upper class professionals first, next taking over the college students, and finally making the phone a global product. Once Apple establishes this plan, it is on its way to acquiring success in the industry. Apple directed its attention to the iPhone by making it capable of accessing the Internet, downloading music, videos, and taking pictures. To do this, Apple created a phone with a unique operating system that calls for the phone to be connected to a computer for synchronizing, the phone is used with application from the Apple store, and the hardware is different in that the battery has a long life. According to Kang (2013), “The iPhone’s screen size is smaller than most other smartphones, but it has an extremely high pixel density, giving it one of the sharpest resolutions available” (para. 5). Another feature of the iPhone that makes it different from other smartphones is that it does not have a memory slot like the others do. Because I understand Apple’s market and the type of customers it wants to attract, I can generate ideas that will help the business to succeed.

Elasticity of demand for the iPhone

Smartphones are high in elasticity in regard to price and income, especially the iPhone. People buy Apple’s product for many reasons; however, the most important reason is that they have a following that will stand in line for hours to get the latest product, and

 

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Learning Team Deliverable

This week the team discussed the Gross Domestic Product (GDP). Gross Domestic Product is the primary measure of the economy’s performance and its annual total outputs of goods and services (McConnell, Brue & Flynn, 2009). Even though the team knew the definition of GDP, everyone was still able to build on past knowledge of GDP; specifically, identifying which items are excluded in GDP and why. The two non-production transactions excluded when calculating GDP are secondhand sales and financial transactions. Secondhand sales entail transactions (sales of a good or service) that are done directly between one or more individuals, these types of trades are ignored because it generates no current production. For example, the sale of a car or laptop from one person to another. Conversely, the types of financial transactions

 

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