Economic analysis
Good or service select: Drone food delivery service.

Write the economic analysis section of a business proposal. This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and variable costs.

Required Elements:

Identify market structure
Identify elasticity of the product
Include rationale for the following questions:
How will pricing relate to elasticity of your product?
How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?
Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?
How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?

Economic analysis
Good or service select: Drone food delivery service.

Write the economic analysis section of a business proposal. This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and variable costs.

Required Elements:

Identify market structure
Identify elasticity of the product
Include rationale for the following questions:
How will pricing relate to elasticity of your product?
How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?
Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?
How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?

Economic Analysis
Purpose of Assignment

to help develop an understanding of what money is, what forms money takes, how the banking system helps create money, and how the Federal Reserve controls the quantity
of money. Students will learn how the quantity of money affects inflation and interest rates in the long run, and production and employment in the short run. Students
will find that, in the long run, there is a strong relationship between the growth rate of money and inflation. Students will review the basic concepts macroeconomists
use to study open economies and will address why a nation’s net exports must equal its net capital outflow. Students will demonstrate the relationship between the
prices and quantities in the market for loanable funds and the prices and quantities in the market for foreign-currency exchange. Student will learn to analyze the
impact of a variety of government policies on an economy’s exchange rate and trade balance.
Assignment Steps

Resources:.nber.org/links/gov.html”>National Bureau of Economic Research (.nber.org/links/gov.html”>http://www.nber.org/links/gov.html)
Develop a 2,100-word economic outlook forecast that includes the following:

· Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years.

· Discuss how government policies can influence economic growth.

· Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.

· Describe how trade deficits or surpluses can influence the growth of productivity and GDP.

· Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.

· Recommend, based on your above findings, whether the strategic plan can be achieved and provide support.