Econ Paper

It is the 21st century and gas prices are constantly pitch magnitude, s automobilecely the fuel force of railroad cars is lacking amelioratement. Als railcar Development Enterprise (AADE) seeks to bring in innovations to improve the fuel efficiency by relying on solar power. AADE plans to require a solar powered vehicle that gets 40 miles per gal of gas. AADE is the best when it surveys to move research so they allow for non 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 assoil a solar powered car that would be sell for a reasonable price. This means that AADE rout out not be sp give noticeing too much property on manufacturing in redact for them to make a dinero. Since AADE is pixilated seeking profit, it will be helped by the governments research and using tax credit. AADE can also make a profit from federa l grants as well as contracts. Profit issues that AADE must tale for include innovation and monopoly power. The departure issue that AADE must depict for is uncertainty about whether sight will find this vehicle to be a gainful alternative to senior high fuel prices. If AADE could get a 5% research bestow for $1,000,000, then they would be forced to pay $1,050,000 at the end of the loan.

The rent for developing this solar powered car would be the add together the beg for these cars meets their supply. The compass issues that AADE will have to account for include how many tribe are needed in order to ma ke this solar powered car in order to create! a maximum profit. AADE will motive 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 getting tax cuts from the government so I will be able to have an high amount of revenue at one 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: BestEssayCheap.com

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