Everyday more people are starting to get rid of physical magazines, newspapers, and now even books. Many people love to read; however, very few have time to sit down and enjoy a good book. Will Bury is an enterprising inventor who truly believes in his newest invention. His mission is to provide people who already like to read the opportunity to read the same books digitally or to listen to them with a realistic synthetic voice.
Will Bury is in need of a working location to continue the work of his latest product as well as a staff to carry on the implementation. He is currently working alone on his invention out of his garage. A working location with more staff will guarantee the company a selection of more books digitized as well as more sales and higher revenue. The company’s success is dependent on being able to get the product out for the customers as well as giving them as many different options of books possible.
Identification of Market Structure:
Will Bury’s business that he is trying to develop is a monopolistic competition market structure. Bury knows that there is already a market for books on CD; however, he has developed and patented a technology for text materials and creates a file with the option of reading it digitally or listening to it with that takes the printed word a realistic synthetic voice. Since he has developed this new technology and there are somewhat similar products in the market it would be a monopolistic competition market structure.
Assumptions regarding market structure and elasticity: