Principles of Microeconomics-Market Structure and Firm Strategy

FratBro23
Category:
Economics
Price: $45 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.


Address the following questions:

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

What are your total costs?

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!!!!

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UT Austin
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors