Reference no: EM133186011

Scenario:

The concept of supply and demand is the heartbeat of economics. Much of what is studied in the field of economics ties directly to supply and demand. For this project, you are a Product Development Manager for a company called Launch Inc. You have been asked by your senior leadership to find a new product that the company can successfully market and launch, and propose it to the company's marketing team. In order to prepare, senior leadership has asked you to carefully review the supply and demand chain of the market place in which your product selection resides, research and gather the necessary data, and bring it all together to do a product plan that carefully reviews the supply and demand chain as well as the price structure.

Last week, you established your explicit and implicit costs. You will use these costs for Air Purifies to establish your economic profits for this week. Remember, your economic profit is the difference between the total opportunity cost of production and the total revenue received by a company. As you work through your product, you will be building a case why your product should be produced.

This is important to your project because when the market is at a state of equilibrium then the price and quantity is balanced. Remember to remain realistic; at a higher price point the quantity demanded will be higher, thus supply will be higher. The chart is set up so you can record your answers directly within it.

This week, we covered how an economic profit or product loss is the revenue seen from the sale of a product and the cost of all input/opportunity costs. The following formula is used:

Total Revenues - (Explicit Costs + Implicit Costs) = Economic profit

Calculate your product's expected economic profit. For total revenues (what you anticipate your product will bring in) use what you anticipate revenue to be for the year 20XX. Finally, explain why this is a solid product that your senior leadership team should select to move forward producing.