...Scenario Concept Edric Vázquez Muñoz ECO/561PR October 7th, 2013 Prof. Carlos Mendez Scenario Concept Carlos Cruz Elasticity Scenario Analysis This paper analyzes the development of a product, supply and demand which has the same evaluating all angles from the viewpoint of an economist with the decision to start a business. Carlos Cruz is an inventor who is trying to create a new product that uses technology to make printed words such as books, materials and convert text into a digital product that people can hear (University Of Phoenix, 2013). This has options or alternatives to their rates in line with the cost of doing business. Carlos must make the important decision whether to incur the costs generated by labor and other labor costs can have the effect of increasing the cost and value of your product or not. The total price of the final product will increase revenues and decrease Carlos by product. Carlos is facing some critical decisions about his invention. He believes he has a viable business, but is not sure how to achieve the maximum total revenue. Carlos has found that some economic principles are present and should not be ignored when launching its product to consumers. Following are some of them. One principle that is present is the concept of supply and demand. The demand is defined as the quantity of a product that consumers are willing and able to buy based on price over a period of time (McConnell and Brue 2008). The demand shows a relationship if all...
Words: 1339 - Pages: 6
...Name ECO/561 Date Professor Selected good: Vegetable and fruit mix based ice cream for Unilever’s “Heartbrand” Introduction Frozen dessert, particularly ice cream, is one of the most prominent sectors of production due to its wide market scope and popularity. However, it is threatened by the increasing concern for healthy diets due to its fat, calorie, and sugar content. As a result, the demand for a healthier version of ice cream with retained or even improved sensory properties arises. Unilever responds to this demand by launching a new kind of ice cream which is based on vegetable and fruit mix, therefore improving the nutrient content. Economical analysis of the product, including market structure, associated costs, elasticity of demand, and pricing and non pricing strategies is provided below. Market Structure In order to identify the suitable strategies for the product launch, it is essential to identify the type of market structure in which the product will engage in. The product is a differentiated version of conventional ice cream, but is an imperfect substitute. In essence, the product is expected to compete in the market by means of value added attributes. Furthermore, there is relatively large number of sellers which could enter and exit the industry easily based on the market conditions. From the mentioned characteristics, it could be inferred that the type of market structure for the product is a monopolistic competition (McConnell, et al., 2009). Target...
Words: 1512 - Pages: 7
...Economics Principals and Law of Demand Economics is the social science that examines how individuals, institutions, and society make optimal choices under conditions of scarcity, (McConnell, Brue, & Flynn, 2009). The first economic concept that I would like to discuss is demand. Demand is a schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time. Demand shows the quantities of a product that will be purchased at various possible prices; other things equal (McConnell, Flynn 2009). A Good example might be our current market for organic foods. Everyone is looking to eat healthier nowadays and one supplier catering to this market is called Whole Foods. Whole Foods was a innovative industry because it came up with the idea of organic products and it was a inelastic company at one time. Whole Foods was the world's leading retailer of natural and organic foods. Whole Foods so far has been able to corner the market and obtain most of the sales in this industry. As everyone knows its prices have been known to be extremely high. The competitors have moved in with lower prices and similar quality products making Whole Foods loose market value and become a elastic industry with more substitutes to choose from. An important characteristic of demand indicates that as price falls, the quantity demanded rises and as the price increases, the quantity demanded...
Words: 787 - Pages: 4
...Job Creation in the United States and the Present Economy The unemployment rate in the United States has doubled over the last years. Although jobs are in existence and unemployment is declining slowly, America has a long way to go before she overcomes this crisis. Many of the jobs are part time employment with wages equaling about $19,000. The unemployment rates do not reflect Americans that have ceased to look for employment. America’s previous pattern was to always recover from recession, but she failed this time (Zakaria, 2011). The subject of this paper is to recommend ideas for the creation of jobs in America. Past Recommendations for Job Creation Present Recommendations for Job Creation As of July 2011, the nation’s unemployment rate reached a staggering 9.1% (U.S. Bureau of Labor Statistics, 2011). While consumer prices are on a rise, what is being done for unemployment? There are many options presently forming to create new jobs in the United States. Jobs4America is a group with hopes of creating up to 100,000 customer service jobs by 2013 (Strauss, 2011). The approach is to hire U.S. employees jobs that have been outsourced to lower-waged providers in other countries (Strauss, 2011). New fuel economy standards are in faith to create thousands of jobs as well. The president is pushing for investments in research and technology that creates new jobs for Americans (Curtis, 2011). While these incentives mentioned above are promising, the ideas are for future...
Words: 286 - Pages: 2
...Financial plan, Strategy, and Overseer When using the financial plan, it specifies a guide in support of the financial managers for the business as well as operating expenses. Old outcomes in conjunction with the consequences regarding up-to-date proceeds and rate developments offer concerning foundation along with any financial statement that could support or foresee the forthcoming for monetary, physical condition of their corporation. The aforementioned may even offer a point of reference on behalf of recording upcoming fiscal effects. Every month evaluations of authentic financial domino effect associated with making financial arrangements totals should offer the data essential in order to respond rapidly to changes regarding their business strategy. Go through Buying Techniques Buying techniques must or need to be studied representing potential fields for decreasing the price. Throughout this appraisal, they should make sure and confirm the approval procedures, and where it must or should be held to make certain individuals are devoted to consent restrictions. This study business must even check for sufficient constraints on expenses boundaries also the total of individual who approved to create buys. Reexamine Contractors A breakdown for current foundation of merchants could even make known chances that decreasing prices via combining merchandises for extra retail influence. Merging of contractors may also manufacture somewhat decrease...
Words: 449 - Pages: 2
...Business Cycle Our team this week discussed the topics on this week’s learning objectives; this paper will talk about our discussion on the business cycle, phases of the business cycle, and market structure. We have determined how to apply and use these resources in our work life and takeaway the benefits of understanding how our economy works. The business cycle is an ever changing weather forecast. The business cycle displays the changes in growth and decline in the economy (McConnell, C. R.). With the constant fluxing of the economy, the business cycle goes through a number of phases (McConnell, C. R.). These phases are contraction, trough, expansion, and peak. Each phase has its own agenda that can either make or break the outcome of the economy. The main focus is to have a healthy growth rate that will increase jobs for everyone in a fashionable time frame but slow enough to not have inflation it too hard. The four phases are the foundation of our economy. At one time or another, the economy is in one of these phases; first is contraction when the economy starts slowing down (McConnell, C. R.). Second is trough, when the economy is in a slump or better known as a recession. Third is the expansion, which is when the economy is on the rise. Last is the peak, when the economy is at its best. These stages or phases are determined by the National bureau of Economic Research or (NBER) (McConnell, C. R.). A GDP rate is what is used by the Business Cycle Dating...
Words: 653 - Pages: 3
...Existing Business Proposal ECO/561 June 21, 2012 Dr. Jill Trask Business Proposal It is very significant to comprise a business plan in the shifting world business to stay ahead. The changes in the economy will create or shatter the business. In this paper Adnan will discuss the existing goods or services business proposal of Thomas Money Services Inc. The reason to have a business plan for the organization is to restore or generate more profits for the business. Elasticity of Demand and Market Structure Thomas Money Service Inc. (TMS) has been in business since 1940. TMS started out as an end user funding company giving way loans for domestic wants. The company prolonged over the next five years by granting business loans, business acquirement financing, and business real estate loans. In 1946 executive made a choice to expand into gear financing. This proved very lucrative for the company. With the end of the World War II, society experienced increased demand for construction and forestry equipment. In 1951, the equipment financing subsidiary, Future Growth Inc. (FGI) purchased and equipment manufacturing company, which vertically integrated the subsidiaries operations. TMS Inc has a monopolistic competition market; elasticity of demand is how much demand varies for manufactured goods in connection to a transformation in price. This transformation is measured as a percentage. For TMS Inc the elasticity is that it can offer the monetary support...
Words: 1397 - Pages: 6
...Market Equilibration Process Paper ECO/561 June 7, 2012 Dr. Jill Trask Market Equilibration Process Paper Market equilibration can be accomplished when market price established through competition so the amount of good bought is equal to the number of goods sold. Supply and demand would be factors to change the market equilibrium. In the oil industry market equilibrium is determined by the cost of oil, competitor’s prices, and technology. “As a price falls, the quantity demand rises, and as a price rises, the quantity demanded falls” (McConnell, Brue, & Flynn, 2009, p. 47). Consumers travel constantly to go to work, school, or vacation. This travel requires the use of some form of transportation whether it is train, airplane, or automobile. The transportation modes use a form of fuel to move the vehicles. Certain periods increase the demand for fuel or decrease the demand, for example holiday weekends would increase the demand. When the price of fuel increases a traveler will see an increase in an airline ticket or a train ticket. If the prices for the airline or train ticket are too much the traveler may choose to drive instead to keep their cost down, When the fuels prices rises so does the commuter train tickets, causing some commuters to find alternate ways to work, such as carpooling. As the fuel prices decrease so do transportation costs allowing individuals to travel more often in their choice of transportations rather than the economical choice. As...
Words: 575 - Pages: 3
...Week One Learning Team Assignment Yao Fu, LaTasha Gregory, Shanelle Grudzinski, Kimberly Mack ECO/561 September 16, 2013 Maria Hamideh Ramjerdi WEEK ONE LEARNING TEAM ASSIGNMENT Team member Kim feels comfortable with the information learned and has a clear understanding of the concepts introduced to this point. She has a better understanding of the management decisions made at the company where she works. Budgets and monies that are as well as are not, invested into training, research, and education, makes more sense to her. The law of diminishing marginal revenue that discusses and graphs input and output provided her with the greatest understanding. She can relate the number of hours worked to the increased quality of output and how the quality of output will decrease because one becomes less productive. Each area taught interrelated and added to the other areas of economics learned. The market equilibration process tied into the understanding of supply and demand when graphed help to understand visually the price point of intersection or equilibrium. She believes this process is the baseline for understanding curve shifts in equilibrium when a market price is affected by a change or constant in the supply and demand. Team member Shanelle believes that more work remains understand effectively and maximize profits considering the many variables for someone with no experience...
Words: 797 - Pages: 4
...Week 2 University of Phoenix Eco/GM 561 When a country decides on something that they are going to produce this product has to set them apart from other countries. A country bases their product on factors such as how much it costs them to produce it and if it sets them apart from the competition. A comparative advantage is the driving force of production for every country. In this paper we will discuss comparative advantage, abundant factors in the production of certain products, recommendations for the country to specialize in, and industries the country of my choice protects (if any). For the purpose of this paper I have chosen to explore the Netherlands and their comparative advantage. I chose this country for personal reasons as my father was born and raised in The Netherlands until he came to the United States at sixteen years of age. When you first think of the Netherlands you might think cheese or Tulips as they are well known for both of those products. The Netherlands has a high comparative advantage when it comes to skilled labor intensive work. First, let’s explore what comparative advantage is. Investopedia.com explains comparative advantage as “an economic law that demonstrates the ways in which protectionism is unnecessary in free trade. Comparative advantage argues that free trade works even if one partner in a deal holds absolute advantage in all areas of production- that is, one partner makes products cheaper, better and faster than its trading partner”...
Words: 1301 - Pages: 6
...Learning Team Deliverable: Week 2 Emily Gumataotao, Pamela Hernandez, Mark Sanschargrin, Terra Stefan ECO/561 February 10, 2014 Peter Oburu Cost Concepts – Pure Competition; Demand for Resources; Identify Production Level to Maximize Profits (Chapters 9, 12) Topics comfortable Team member Terra felt comfortable with the purely competitive concepts. She felt they came natural for her because she has been in the retail business for over 20 years. Team member Mark felt comfortable with learning the topic of the Four Basic Market Models consisting of the Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly structures. Team member Pamela felt comfortable with the definition of purely competitive concepts and how they relate to a certain type of industry for example agriculture. Team member Emily felt comfortable with the idea of pure competition and the fact that each market no matter how big or small is purely competitive. Topics struggled Team member Mark struggled with the two methods to determine the level of profit maximization, the Total Revenue Total Cost approach as well as the Marginal Revenue Marginal Cost approach. The MR=MC rule seemed unclear in that the more marginal revenue should overcome the costs in all ranges of production. The topic became a little clearer with the cost and revenue curve simulation. Team member Pamela struggled with the charts and few real life examples to better understand the concepts...
Words: 1651 - Pages: 7
...ECO/HC 561 COMPLETE CLASS To purchase this visit here: http://www.activitymode.com/product/ecohc-561-complete-class/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO/HC 561 COMPLETE CLASS ECO/HC 561 Economics in Health Care Business Proposal Project Paper ECO/HC 561 Economics in Health Care Macroeconomic Policy & its Implications to Healthcare Providers ECO/HC 561 Economics in Health Care International Paper ECO/HC 561 Economics in Health Care Cost & Consumerism ECO/HC 561 Economics in Health Care Technology Proposal Presentation ECO/HC 561 Economics in Health Care Week 1 DQs ECO/HC 561 Economics in Health Care Week 2 DQs ECO/HC 561 Economics in Health Care Week 3 DQs ECO/HC 561 Economics in Health Care Week 4 DQs ECO/HC 561 Economics in Health Care Week 5 DQs ECO/HC 561 Economics in Health Care Week 6 DQs Activity mode aims to provide quality study notes and tutorials to the students of ECO/HC 561 COMPLETE CLASS in order to ace their studies. ECO/HC 561 COMPLETE CLASS To purchase this visit here: http://www.activitymode.com/product/ecohc-561-complete-class/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO/HC 561 COMPLETE CLASS ECO/HC 561 Economics in Health Care Business Proposal Project Paper ECO/HC 561 Economics in Health Care Macroeconomic Policy & its Implications to Healthcare Providers ECO/HC 561 Economics in Health Care International Paper ECO/HC 561 Economics in Health Care Cost & Consumerism ECO/HC 561 Economics in Health Care Technology Proposal...
Words: 1009 - Pages: 5
...ECO 561 Entire Course (UOP Course) For more course tutorials visit www.tutorialrank.com ECO 561 Week 1 Individual Assignment Scenario Concept (Price Elasticity Scenario) ECO 561 Week 1 DQ 1 ECO 561 Week 1 DQ 2 ECO 561 Week 2 Learning Team Assignment Scenario Analysis ECO 561 Week 2 Assignment Cost and Revenue Curves Simulation ECO 561 Week 2 DQ 1 ECO 561 Week 2 DQ 2 ECO 561 Week 3 Individual Assignment Cost Scenario ECO 561 Week 3 DQ 1 ECO 561 Week 3 DQ 2 ECO 561 Week 4 Individual Assignment Simulation Analysis ECO 561 Week 4 DQ 1 ECO 561 Week 4 DQ 2 ECO 561 Week 5 Individual Assignment Interest Rate Report ECO 561 Week 5 DQ 1 ECO 561 Week 5 DQ 2 ECO 561 Week 6 Learning Team Assignment International Paper ECO 561 Week 6 DQ 1 ECO 561 Chapter 1 Quiz ECO 561 Chapter 2 Quiz ECO 561 Chapter 3 Quiz ECO 561 Week 4 Quiz ECO 561 Chapter 5 Quiz ECO 561 Chapter 6 Quiz ECO 561 Chapter 7 Quiz ECO 561 Chapter 8 Quiz ------------------------------------------------------------------------------------------ ECO 561 Chapter 1 Quiz (UOP Course) For more course tutorials visit www.tutorialrank.com Chapter 1 Quiz Question 1 As per the law of demand: When rates increase, ceteris paribus Question 2 In response to news reports that taking aspirins daily can reduce an individual's risk of a heart attack, there will most likely be Question 3 The number of pizzas this restaurant sells per week increases from 500 to 700....
Words: 995 - Pages: 4
...ECO 561 WEEK 2 COMPLETE A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=eco-561-week-2-complete Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ECO 561 Week 2 Complete Learning Team Deliverable The team debated over three different cost or expense concepts in business economics. The first topic dealt with fixed and variable costs and how these costs related to supply and demand. Fixed costs are costs that will not vary regardless of the changing outputs and paid out even if the outputs are zero. On the other hand, variable costs are the cost that will vary based on the levels of outputs produced by the business and those costs changes directly with the level of outputs. Items such as raw materials and most labor cost are variable because they can change over time (McConnell, Brue & Flynn, 2009). Understanding both the fixed cost and the variable cost would help business get a better handle on the total cost associated with operating a business. In business economics, cost and knowing the effecting controllers, allows managers to adjust accordingly. Businesses overall, need to know where money is going, when and where they need to cut expenses, and when they need to produce more to offset the cost. As the demand for a product or service increase, the company would need to understand when it should increase its supply for that product or service. It seems simple, but there is much more that goes into increasing...
Words: 532 - Pages: 3
...ECO 561 Chapter 3 Quiz To Buy This material Click below link http://www.uoptutors.com/ECO-561/ECO-561-Chapter-3-Quiz ECO 561 Chapter 3 Quiz CHAPTER 3 QUIZ Question 1 The demand curve facing each wool producer is ________ starting at $3.00 per pound. Question 2 If a firm in a perfectly competitive industry raises price above market price, Question 3 The fast food industry is not considered perfectly competitive because: Question 4 You are certain that a normal rate of profit is 18% for the fast-food industry. What is your estimate of a normal rate of profit in the computer software industry, which is considered to be much riskier than the computer industry? Question 5 Situation 1: You are the owner an only employee of a company that writes computer software that is used by doctors to bill patients. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. A yearly normal profit for your computer software firm would be Question 6 The marginal product of the second worker is. Question 7 Demand for the product of an industry in perfect competition is assumed to be inelastic. Question 8 If the first worker produces five custom picture frames a day, and the second worker produces five additional custom picture frames a day, it is clear that diminishing marginal returns have set in. For more Assignments visit:...
Words: 265 - Pages: 2
