Cost Concepts

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Revenue, Cost Concepts and Market Structure Proposal
Economics/561
November 16, 2010

Revenue, Cost Concepts, and Market Structure Proposal
Will Bury’s innovative thinking has created a new technology that transforms books into a digital copy that can be read on a computer, portable device or listened to on any auditory device. This technology started out with an inhuman voice, but with time and research the voice improved to be a more smooth practical synthetic voice. Will Bury have no intentions of selling the technology to convert books into digital copies, but he will eventually translate a copy of the books into a digital version. The overall goal of the company is to provide digitally converted copies of books at a sensible price to a product that will ensure a high level of customer satisfaction. This can assist in the increase of books read and minimize the hassle of retrieving a hardcopy of a book.
Recommendations
Today’s market for this type of device has no limit it can expand into all ages. The suggested recommendation would be to target young adults. Research have revealed that adults between the ages of 18-32 read the most books, commonly due to acquiring a higher education, and this age group is also more in tuned with the latest technological advances. With the focus on this market, certain devastating economic factors will be minimal due to the competitive advantage this company has over getting a hardcopy as well as the inelasticity of individuals purchasing books. The company success will be in its advertising tactics. Advertising will have to be geared toward influencing consumers of the advantages this product has over owning actual hardcopies of books. Advertising could be in the form of websites, infomercials, and demonstration seminars.
Economic Concepts to Support Recommendations
The operational phase of this company is bound…...

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