# Principle of Microeconomics:Market Structure and Firm Strategy

Dec 7th, 2015
SoccerBoss
Category:
Economics
Price: \$30 USD

Question description

Assignment Details      ASSIGNMENT DUE:SUNDAY 12-13-15

### Assignment Description

1000-1500 words

You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows:

 Technology (Web design and maintenance) \$5,000 Postage and handling \$1,000 Miscellaneous \$3,000 Inventory of cookbooks \$2,000 Equipment \$4,000 Overhead \$1,000

Part I

Deliverable Length: 1 graph plus calculations

You must give up your full-time job, which paid \$50,000 per year, and you worked part-time for half of the year.

The average retail price of the cookbooks will be \$30, and their average cost will be \$20.

Assume that the equation for demand is Q = 40,000 – 500P, where

Q = the number of cookbooks sold per month

P = the retail price of books.

Show what the demand curve would look like for price between \$25 and \$35.

Suppose that you expect to sell about 22,000 cookbooks per month online, and assume your overhead, technology, and equipment costs are fixed.

Is the business worth pursuing so far?

What market structure have you entered, and why?

What can you do to guarantee success in this market?

What pricing strategy might you use?

TO AVOID ANY POINTS DEDUCTED IN THIS ASSIGNMENT ENSURE TO PROVIDE THE FOLLOWING: 3 REFERENCES AND IN-TEXT CITATIONS IN APA FORMAT. WEBSITES YOU FOUND RESEARCH FROM MUST BE INCLUDED. BE INFORMATIVE, INCLUDE LOTS OF DETAIL AND NO SHORT ANSWER RESPONSES. POINTS WILL BE DEDUCTED!!!!

(Top Tutor) Daniel C.
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School: Boston College

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