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Principle of Microeconomics
Asked: Dec 15th, 2015
Hello, I am needing assistance with this assignment. a week ago I requested another tutor to assist me and they failed to come through with the finish task. My assignment is due today, but I requested to have it in by tomorrow. Please help! I have attached what I did so far I just need assistance with Part II. Thank you
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)
Postage and handling
Inventory of cookbooks
NOTE: PLEASE TAKE A LOOK AT THE ATTACHED FILE. I HAVE ALREADY DID THE GRAPH AND CALCULATIONS for this part. I NEED ASSISTANCE WITH PART II.
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? Do we make profit?
What market structure have you entered, and why?
What can you do to guarantee success in this market? How do we service?