Abc Solar Panels

Business Proposal

Claudia Baeza

ECO/561

September 13, 2014

Paul Lorento

Business Proposal

ABC Solar Panels Inc. is a company that installs solar panels to residential and commercial properties. Solar energy is the technology used to harness the suns energy and make it useable.

Market Structure

Solar panels have become the new common thing to do there for it has become a trend to have them in homes and commercial business. This has become a perfect competition structure, there are other companies that sell the same type of product.

Elasticity

ABC Solar Panels Inc. is a company that installs panels in residential and commercial properties. They work to provide the best service around, they are professional at what they do. Delivering the best products in the industry. Solar panels are becoming the new investment and people are looking for the best prices and there are a lot of competition. The competition has set the stage for Perfect Competition structure, since there are many companies that sell the same product it will not affect the price change according to McConnell, Brue, and Flynn (2009). Solar panel are sold by big vast competitors or small companies, both products are the same; the only difference is who is selling them. They differ from a small business to a larger business or corporation. When there are many companies selling the same product the market will dictate the price of the product.

Marginal cost and marginal revenue

 In order to increase the marginal revenue it is important to understand the price equilibrium. A business needs to analyze data of the competitors to make sure that they are keeping their price lower and keeping the customers happy. Keeping the prices down will allow for more business in the long term, and this is the goal. To stay in business is key there for monitoring other business is important.

Pricing

In a pure completion market it difficult to raiment competitive without having a plan, there for it is important that the product can be replaced without any issues if it needs to be according to McConnell, Brue, and Flynn (2009). It is always important for a company to stand out especially in a market where there is plenty of competition. The demand of solar panels can change the product demand by the incremental in change either by the price of the panels. As soon as the demand is considered elastic if any small changes in price leads to people demanding the product more this is when the public decides to buy the product.  The elasticity of demand for solar power well depend on how much the product is in demand at that particular time.