micro economics help

 

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:

$1,000

Technology (Web design and maintenance)	$5,000
Postage and handling Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper		$1,000
Miscellaneous	$3,000
Inventory of cookbooks	$2,000
Equipment	$4,000
Overhead

 

You will need to complete the spreadsheet first and then answer the question on the word document.

   

Paper Title Goes Here

2

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:

$1,000

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

Everything in blue should be deleted

Be sure to fill out the spreadsheet for this assignment too.

Don’t forget to use references and post them.

Paper Title Goes Here

Write your introduction here. Write a brief paragraph that introduces the reader to your topic and it should explain what your paper will be discussing. Much of your introduction may be taken from the assignment itself (in your own words).

Write 800-1200 words (word count does not include the section headings below). For assistance with your assignment, please use your text, Web resources, and all course materials

Part I

Assume that the equation for demand is Q = 1800 – 30P. Use the “excel worksheet” to create your chart and copy your chart here. Do NOT post your spreadsheet.

Part II

Elasticity of Demand

What is the elasticity of the demand for cookbooks bought this way?

Proceed or Not?

Is the business worth pursuing so far? Why or why not?

Total Costs

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?

Marginal Costs

What are your marginal costs? You cannot answer this because the assignment does not provide enough data. So, explain what marginal costs are and how it is calculated.

Operating in the Long Run

What are the implications of operating in the short run and the long run?

Diminishing Marginal Returns

As your business grows, how must you consider the issues regarding diminishing marginal returns?

Economics of Scale

As your business grows, how must you consider the issues regarding diminishing marginal returns and economies of scale?

Market Structure

What market structure have you entered, and why?

Success in the Market

What can you do to guarantee success in this market?

Price Discrimination

Can you use price discrimination in this business?

Pricing Strategy

What pricing strategy might you use?

Conclusion

Provide a summary of what was discussed in this paper. Include any summary remarks and observations.

References

List your reference here. The reference page must include all of the references you used, listed in proper APA format.

Sheet1

= 18

0 –

Q P
0
30
Q P

0 0 0
0 5 0
0 10 0
0 15 0
0 20 0
0 25 0
0 30 0
0 35 0
0 40 0
0 50 0
0 60 0

																																																																																										Q																								0		30		P
	5
	10
	15
	20
	25
	35
	40
	50
	60
Total Revenue = Price x Quantity

Part I: Demand Curve

P 0 5 10 15 20 25 30 35 40 0 0 0 0 0 0 0