Econ Paper

It is the 21st century and gas prices are constantly transform magnitude, s motor carcely the fuel force of cars is lacking advancement. Als railcar Development Enterprise (AADE) seeks to bring in innovations to improve the fuel efficiency by relying on solar power. AADE plans to rag a solar powered vehicle that gets 40 miles per gal of gas. AADE is the best when it baffles to move research so they allow for not have many an(prenominal) problems come uping an alternative to avoid relying intemperately on increasing fuel prices. The dilemmas they face will come from an economic standpoint. AADE necessitys to make a solar powered car that would be sell for a reasonable price. This means that AADE gutter not be sp give noticeing too much property on manufacturing in redact for them to make a dinero. Since AADE is incorruptible seeking profit, it will be helped by the governments research and using tax credit. AADE can also make a profit from federal grants as wel l as contracts. Profit issues that AADE must tale for include innovation and monopoly power. The disadvantage issue that AADE must depict for is uncertainty about whether masses will find this vehicle to be a advantageous alternative to senior high fuel prices. If AADE could get a 5% research bestow for $1,000,000, then they would be laboured to pay $1,050,000 at the end of the loan.

The rent for developing this solar powered car would be the measure the beg for these cars meets their supply. The task issues that AADE will have to account for include how many peck are needed in order to make this solar powered car in order to create a maximum profit. AAD! E will neediness to use the least amount of people possible to account for the greatest income available. If I was AADE, I would develop this car because the demand for this vehicle is very high. On top of the high demand, I am also acquiring tax cuts from the government so I will be able to have an high amount of revenue at a time than I would if I was to conk out building this car later when the demand wouldnt be as high.If you want to get a full essay, order it on our website: OrderCustomPaper.com

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