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<strong>ECO</strong> <strong>561</strong> Week 4 Complete<br />
<strong>ECO</strong> <strong>561</strong> Week 4<br />
Individual Assignment - Business Proposal<br />
You will apply economic principles presented in Weeks One through<br />
Three in this week's assignment. Your assignment will be reviewed<br />
by your peers and by your facilitator in week five and should be<br />
revised as necessary based on feedback as the first part of the final<br />
assignment in<br />
week six.<br />
Select a new, realistic good or service for an existing industry.<br />
Write the economic analysis section of a business proposal. This will<br />
include statements about the market structure and the elasticity of<br />
demand for the good or service, based on text book principles. You<br />
need to create hypothetical data, based on similar real world<br />
products to estimate fixed and variable costs.<br />
Required Elements:<br />
• Identify market structure<br />
• Identify elasticity of the product<br />
• Include rationale for the following questions:<br />
• How will pricing relate to elasticity of your product?<br />
• How will changes in the quantity supplied as a result of your pricing<br />
decisions affect marginal cost and marginal revenue?
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