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Business Protocol: Will Bury

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Business Protocol: Will Bury
Matthew Walker
ECO/561
Professor Sharghi
June 2nd, 2012

Business Protocol: Will Bury Will Bury, an enterprising inventor, has invented a brilliant and innovative technology that has transformed the world of digital-audio-books and novels. Many consumers have strayed from the world of audio books due to the incorporation of an odd sounding and sometimes inaudible synthetic voice. Other individuals have strayed from the world of audio books due to the high price incorporated with audio files that are read by an actual human voice. Will Bury has invented a technology for audio books that incorporates a realistic synthetic voice that has a low production cost, saving individuals a significant amount of money and frustration. Although Will has sizable skills in technology and innovation, he lacks certain skills in running his new business, and how to sell a considerable amount of audio books. In this paper, I will introduce a few recommendations for Will’s company so he may increase revenue for the company, achieve ideal production levels, determine how fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs. The first recommendation I would suggest to Will is to look and incorporate the laws of supply and demand. These laws conclude that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The price Will has set for the books that still have a current copyright and royalty fee are more expensive than those that have had the copyright lapse, but they still have sold more books. One recommendation, which is in agreement with Will’s friend Elsa, would be to raise prices, not significantly,

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