Here is the synopsis of our sample research paper on Economics Questions. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper explains the economic concepts which are present in for different scenarios. The first scenario considers the potential of a company to sell either a single license would take royalties from ongoing production of goods. The second scenario considers why airlines may not pass on a new government tax on airline travel due to poor demand conditions. The third scenario explains why different influences may be impacting on the rolling power cuts which are taking place in California. The last scenario explains why the cost of new technology decreases as the demand increases. The bibliography cites 2 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEecquestd.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
or to charge a royalty. Firm A will want to maximise their return so will need to compare the two options. With an upfront license fee there is the
largest amount of cash gain in the short term, which may minimize opportunity cost associated with royalties, and facilitate ongoing investment into other areas. However, in the long term the
royalties may add up to more, especially if the product is likely to send a large amount, and as Firm B it stated as being in a monopoly position if
they manufacture the product, this is likely to mean that there will be no competition. If Firm A believe that there would be competition into the market relatively soon, and
the royalties would become more volatile they may prefer an upfront license fee. In addition to this, if Firm A believe that the sales will start off slowly, and the
royalties for the first few years would be very low, there is a potential for the real value of the lump sum to be more than the royalties over a
large number of years. The potential returns over a set period time pairing the short term license fee and the royalties would need to be compared, with the future cash
flows discounted in order to account for inflation. As time goes by it is unlikely that a monopoly position would be retained, and that other competing or substitute products would
emerge, at which time the sales from the new products may decline, and the royalties would also decline. However, if the company is able to establish itself as a market
leader, and makes long-term sales, then there is potential for the royalties would be the best approach. Situation 2 when considering the position of the imitation of a 10% tax
...