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You are starting your o… Show more PLEASE ANSWER PART II O

Paper help Economics You are starting your o… Show more PLEASE ANSWER PART II O

Economics

You are starting your o… Show more PLEASE ANSWER PART II O

You are starting your o… Show more PLEASE ANSWER PART II ONLY. NOTE: PARTS III, IV, AND V TO FOLLOW SHORTLY. 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: Technology (Web design and maintenance) $5,000 Postage and handling $1,000 Miscellaneous $3,000 Inventory of cook books $2,000 Equipment $4,000 Overhead $1,000 Technology (Web design and maintenance): $5,000 Part I %u2013 NOTE: PART 1 HAS BEEN ANSWERED Requirement: 1 graph plus calculations You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year. The average retail price of the cookbook will be $30, and the average cost will be $20. Assume that the equation for demand is Q = 10,000 – 90P, where Q = the number of cookbooks sold per month P = the retail price of books. Show what the demand curve would look like if you sold the books between $25 and $35. Part II – ANSWER PART II ONLY. THANKS! Deliverable Length: 1,000-1,500 words Address the following questions: What is the elasticity of the demand for cookbooks bought this way? Is the business worth pursuing so far? Why or why not? Suppose that you expect to sell about 22,000 cookbooks per month online, and assume that your overhead, technology, and equipment costs are fixed. What are your total costs? What are your marginal costs? What are the implications of operating in the short run and the long run? As your business grows, how must you consider the issues regarding diminishing marginal returns and economies of scale? What market structure have you entered, and why? What can you do to guarantee success in this market? Can you use price discrimination in this business? What pricing strategy are you thinking about? Is the business worth pursuing so far? Why or why not? • Show less

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