Business Plan and Competition Models, marketing homework help

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1 Consider the problem of opening your own chocolate candy retail business in your local town. In order to do this, you need estimates on the amount of chocolate candy you can sell in a given month, as well as estimates on the cost of running your business. Conduct research to determine the average per-capita consumption of chocolate candy to determine how much candy you can realistically be expected to sell in a given month in your town. Find a suitable location within your town, for example a small retail store at the mall or some other location that is for lease, and define fixed costs such as rent, required insurance, etc. to determine your fixed costs. Set up an appropriate number of hours to be open and determine how many employees you will need and how much you will have to pay them. Data on wages for different occupations in different parts of the country is available from the Bureau of Labor Statistics. Finally, determine various costs, for example your average fixed and variable costs, and the price at which you can realistically be expected to sell your chocolate candy. Are you able to turn a profit on your business? Why or why not?

2. Research three different models of competition between firms that are highly interdependent (note: there are over a dozen so you should have no problem finding many different models to examine). Discuss the similarities and differences between these special models. Be sure to explain the different circumstances where one model might be more appropriate to use than another.

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