Mr._Burry

Mr. Will Bury is the developer of a proprietary technology to convert a printed text into a human like auto formatting gadget for reading. The technology is developing, patented ,and has access to copyrighted protection. His goal is to remain in a monopolist structure by creating barriers to entry (University of Phoenix, 2010). Although, he has not made as much money with his invention he has to compete with an opportunity cost, his full- time job‘s salary at $200,000 including benefits, truthfully to become a success. Elasticity is to determine the sensitivity of demand to change the price. This proposal will cover elasticity price, recommendations for increasing revenue, methods to achieving ideal production levels, ways to adjust to maximize profit using fixed and variable cost, and ways to reduce cost. Recommendation to Increase Revenue Promoting products in a business to customers is a critical avenue to increase revenue. Advertising though social and mainstream media outlets are methods he can use to gain profit especially before others will be introduce into the market. The capital intensive is the large amount of money he will need and other financial resources to produce. The idea is make profit. Still, the elasticity price will inform him of the percentage changes he should expect in the quantity demand. The change occurs in the percentage price. For now, his revenue to increase marginal cost and Marginal profit (MC=MP) must reach an equilibrium. Differentiation is a second method to increase revenue. The economy is diverse all but few nationalities call the United States home and many do not speak English as their first language. It will not be long before an idea similar to Mr. Bury’s will reach the world of technology. By incorporating by-lingual books/texts this can help expand his quantity demand. Achieve Production Levels Technology has changed the production process (Allen & Economy, 2000). To achieve production levels, use technology to improve products and services. Ultimately, the proprietary technology will shuffle into a business incubator. Technology increase speed and improves quality services. However, the technology proportions in this development can help many other companies to supply materials and production, and this can be a solution for reducing fixed and variable cost. Fixed Cost Adjustments Working online is the best option because of the expensive rates in rental property. Mr. Bury’s demand curve is sliding. Fixed cost remains the same therefore it is straightforward. Rent and equipment are the easiest adjustments to perform in cost reduction. Mr. Bury can continue to sell his product online until the business’ quantity demand increase. Variable Cost Adjustments The essential part in this monopolist invention is the equipment. Therefore, outsourcing is the basic recommendation for a solution. To outsource use the right company, disregard contracts, to avoid fraudulence. Hiring hourly workers will allow Mr. Bury’s new business to development and manage reduction cost. How to Reduce Cost The economic condition currently is gradually elevating itself out of a recession. Consequently, employment is one of the biggest shadows haunting the government. A Labor-intensive manner is a firm he should also choose to produce while using foreigners. They work for less as well as foreign products are less expensive to purchase. Mr. Bury has created a development that does not require much manual labor. However, it is necessary. To reduce cost, managing labor force and outsourcing to foreign countries could include adjustment to maximizing profit. Scenario Assumption and Values In this scenario, there are several assumptions are concluded but the objective of Mr. Bury’s development of the proprietary technology is to create an amazing gadget that has never been constructed. His values are set in place; it is just a matter of time, demand, and profit that will cause this unique invention to succeed. Unlike the 1920s, the economy is not in its best terms especially for employment and Mr. Bury is taking a huge risk to gamble with his full- time job in pursuit of his dream. Nevertheless, this proposal has unique implementations with the recommendations to increase revenue, ways to achieve ideal production levels, ways to determine how fixed and variable cost should be adjusted to maximize profit and methods to reduce cost in this start up business.