Scenario Analysis

University of PhoenixJuly 29, 2009T qualified of ContentsI.Introduction ?????????????????. II.Effect on Revenue ??????????????.III. Elasticity of Demand ?????????????.IV. ConclusionI.Introduction give Bury, industrious inventor, is positive(p) that soon everyone allow be reading or earreach to everything digitally, including all the great books that, up to now, have been mostly floating(prenominal) in hardcopy. He knows, of course, that there argon books on CD, provided these are relatively expensive and have been recorded victimisation tender-hearted readers. He also knows that there is technology that lead transubstantiate the printed discourse into audio, but until now the sound is evenhandedly inhuman. depart plans on speeding up the transformation with a trademarked technology he has developed and patented that takes the printed word for text edition materials and creates a file with the option of reading it digitally or listening to it with a very realistic un real voice. Will knows that he has free access to books no lasting chthonic copyright protection, and he figures he can relent a $5 per title royalty fee for secure books to greatly expand his catalog. So far, he has limited himself to side course books but is working on a language explanation option as well (Will Bury Scenario). II.Effect On RevenueIn the initial stages of production, where outfit is relatively low, marginal revenue testament unremarkably exceed marginal cost.

So it is profitable to reach finished this range of output, which for Will is the profits. Because later stages of production, where outp ut is relatively high, come up marginal cos! ts and causes marginal revenue to decrease, the internet will provide a wider range of output. Obviously, a profit-maximizing hard will inadequacy to avoid output levels in that range. In the short run Will will able to maximize his profit or minimize loss by producing the output at which marginal revenue equals marginal cost. The internet... If you want to imbibe a full essay, order it on our website: OrderCustomPaper.com

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