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The general rule is that firm maximizes profit by producing that quantity of output where

marginal revenue equals marginal costs. The profit maximization issue can also be approached

from the input side. That is, what is the profit maximizing usage of the variable input. To

maximize profits the firm should increase usage (up to the point where the input)s marginal

revenue product equals its marginal costs(. *o mathematically the profit maximizing rule is

$%+ - $'. The marginal revenue product is the change in total revenue per unit change in the

variable input assumes labor. That is $%+ - T%/. $%+ is the product of marginal revenue

and the marginal product of labor or $%+ - $% x $+.

smartphone is a high0end mobile phone built on a mobile computing platform, with more

advanced computing ability and connectivity than a contemporary feature phone.123143153 The first

smartphones were devices that mainly combined the functions of a personal digital 

assistant 6+78 and a mobile phone or camera phone. Today)s models also serve to combine the

functions of   portable media players, low0end compact digital cameras,  pocket video cameras,

and 9+* navigation units. $odern smartphones typically also include high0

resolution touchscreens, web browsersthat can access and properly display standard web pages

rather than :ust mobile0optimized sites, and high0speed data access via ;i0"i and mobile 

 broadband.

The i+hone retroactively labeled the original i+hone, i+hone 49, or i+hone <79< was

the first generation of i+hone designed and marketed by pple Inc. and was succeeded by

the i+hone 59. It was announced on =anuary >, 4??@ after months of rumors and speculation. It

was introduced in the &nited *tates on =une 4>, 4??@. It featured quad0

 band 9*$ with 9+%* and <79<. The original i+hone)s design was centered on a 5.A inches

6B> mm8 glass multi0touch touchscreen display. The original i+hone introduced five physical 

 buttons that have remained consistent over newer generations of i+hone. The device featured

a chrome plated metal frame. The back of which was made of   brushed aluminum with a black

 plastic base, required because metal shields cellular and ;i0"i signals. The camera was locatedin the upper0left corner of the i+hone)s rear. The headphone socket was recessed into the casing,

making it incompatible with most headsets without the use of an adapter. Cther models do not

have this issue.

To profit maximization of I+DCE<, we take some step for that. Dere explain all of that!

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# How much to produce:

+roduct produce is depend on development of this product In business and engineering, new

 product development 6E+78 is the term used to describe the complete process of bringing a

new product to market. product is a set of benefits offered for exchange and can be tangible6that is, something physical you can touch8 or intangible 6like a service, experience, or belief8.

There are two parallel paths involved in the E+7 process! one involves the idea

generation, product design and detail engineeringF the other involves market research

and marketing analysis. 'ompanies typically see new product development as the first stage in

generating and commercializing new products within the overall strategic process of product life

cycle management used to maintain or grow their market share.

The process of I+DCE< product produce generate as!

1. Idea 9eneration is often called the (fuzzy front end( of the E+7 process

Ideas for new products can be obtained from basic research using a *;CT

analysis 6*trengths, ;eaknesses, Cpportunities G Threats8, $arket and consumer

trends, company)s %G7 department, competitors, focus groups, employees,

salespeople, corporate spies, trade shows, or <thnographic discovery methods

6searching for user patterns and habits8 may also be used to get an insight into new

 product lines or product features.

ots of ideas are being generated about the new product. Cut of these ideas many

ideas are being implemented. The ideas use to generate in many forms and their

generating places are also various. $any reasons are responsible for generation of an

idea.

Idea 9eneration or Hrainstorming of new product, service, or store concepts 0 idea

generation techniques can begin when you have done your C++C%T&EIT

E*I* to support your ideas in the Idea *creening +hase 6shown in the next

development step8.

4. Idea *creening

The ob:ect is to eliminate unsound concepts prior to devoting resources to them.

The screeners should ask several questions!

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;ill the customer in the target market benefit from the productJ

;hat is the size and growth forecasts of the market segment/target

marketJ

;hat is the current or expected competitive pressure for the product ideaJ

;hat are the industry sales and market trends the product idea is based

onJ

Is it technically feasible to manufacture the productJ

;ill the product be profitable when manufactured and delivered to the

customer at the target priceJ

5. 'oncept 7evelopment and Testing

7evelop the marketing and engineering details

Investigate intellectual property issues and search patent data bases

;ho is the target market and who is the decision maker in the purchasing

 processJ

;hat product features must the product incorporateJ

;hat benefits will the product provideJ

Dow will consumers react to the productJ

Dow will the product be produced most cost effectivelyJ

+rove feasibility through virtual computer aided rendering, and rapid

 prototyping

;hat will it cost to produce itJ

Testing the 'oncept by asking a sample of prospective customers what they think

of the idea. &sually via 'hoice $odelling.

K. Husiness nalysis

<stimate likely selling price based upon competition and customer feedback 

<stimate sales volume based upon size of market and such tools as the "ourt0

;oodlock equation

<stimate profitability and break0even point

A. Heta Testing and $arket Testing

+roduce a physical prototype or mock0up

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Test the product 6and its packaging8 in typical usage situations

'onduct focus group customer interviews or introduce at trade show

$ake ad:ustments where necessary

+roduce an initial run of the product and sell it in a test market area to determine

customer acceptance

L. Technical Implementation

 Eew program initiation

"inalize Muality management system

%esource estimation

%equirement publication

+ublish technical communications such as data sheets

<ngineering operations planning

7epartment scheduling

*upplier collaboration

ogistics plan

%esource plan publication

+rogram review and monitoring

'ontingencies 0 what0if planning

7. 'ommercialization 6often considered post0E+78

aunch the product

+roduce and place advertisements and other promotions

"ill the distribution pipeline with product

'ritical path analysis is most useful at this stage

B. Eew +roduct +ricing

Impact of new product on the entire product portfolio

#alue nalysis 6internal G external8

'ompetition and alternative competitive technologies

7iffering value segments 6price, value, and need8

+roduct 'osts 6fixed G variable8

"orecast of unit volumes, revenue, and profit

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# What input to be used and in what quantity:

*upply and demand is an economic model of price determination in a market. It concludes that in

a competitive market, the unit price for a particular good will vary until it settles at a point where

the quantity demanded by consumers 6at current price8 will equal the quantity supplied by producers 6at current price8, resulting in an economic equilibrium of price and quantity.

The four basic laws of supply and demand are!

2. If demand increases and supply remains unchanged, then it leads to higher

equilibrium price and quantity.

4. If demand decreases and supply remains unchanged, then it leads to lower

equilibrium price and quantity.

5. If supply increases and demand remains unchanged, then it leads to lower

equilibrium price and higher quantity.

K. If supply decreases and demand remains unchanged, then it leads to higher price

and lower quantity.

The inputs or resources used in the production process are called factors of production by

economists. The myriad of possible inputs are usually grouped into five categories. These factors

are!

%aw materials

$achinery

abor services

'apital goods

and

In the Nlong runO, all of these factors of production can be ad:usted by management. The Nshort

runO, however, is defined as a period in which at least one of the factors of production is fixed.

fixed factor of production is one whose quantity cannot readily be changed. <xamples include

ma:or pieces of equipment, suitable factory space, and key managerial personnel.

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variable factor of production is one whose usage rate can be changed easily. <xamples include

electrical power consumption, transportation services, and most raw material inputs. In the short

run, a firmPs Nscale of operationsO determines the maximum number of outputs that can be

 produced. In the long run, there are no scale limitations.

IPHONE input used and quantity:

Screen and input

The touchscreen is a > cm 65.A in8 liquid crystal display with scratch0resistant glass.

1K23 The capacitive touchscreen is designed for a bare finger, or multiple fingers for multi0

touch sensing. The screens on the first three generations have a resolution of 54? Q KB? 6D#98

at 2L5 ppi, while that of i+hone K and i+hone K* has a resolution of LK? Q >L? at 54L ppi.

The touch and gesture features of the i+hone are based on technology originally developed

 by "inger;orks.   $ost gloves and styluses prevent the necessary electrical conductivityF

however, capacitive styli can be used with i+hone)s finger0touch screen. The i+hone 59* and

later also feature a fingerprint0resistant oleophobic coating.

The top and side of the i+hone 59*, externally identical to the i+hone 59. The switches were

 black plastic on the original model. "rom left to right, sides! wake/sleep button, *I$ card slot,

headphone :ack, silence switch, volume controls. Top! earpiece, screen.

The i+hone has a minimal hardware user interface, featuring only four or five buttons, depending

on the generation. The only physical menu button is situated directly below the display, and is

called the (Dome button( because it closes the active app and navigates to the home screen of the

interface. The home button is denoted not by a house, as on many other similar devices, but

a rounded square,   reminiscent of the shape of icons on the home screen. multifunction

sleep/wake button is located on the top of the device. It serves as the unit)s power button, and

also controls phone calls. ;hen a call is received, pressing the sleep/wake button once silences

the ringtone, and when pressed twice transfers the call to voicemail. *ituated on the left spine are

the volume ad:ustment controls. The i+hone K has two separate circular buttons to increase and

decrease the volumeF all earlier models house two switches under a single plastic panel, known

as a rocker switch, which could reasonably be counted as either one or two buttons. 7irectly

above the volume controls is a ring/silent switch that when engaged mutes telephone ringing,

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alert sounds from new G sent emails, text messages, and other push notifications, camera shutter

sounds, #oice $emo sound effects, phone lock/unlock sounds, keyboard clicks, and spoken

autocorrections. This switch does not mute alarm sounds from the 'lock application, and in

some countries or regions it will not mute the camera shutter or #oice $emo sound effects.

1KB3 ll buttons except Dome were made of plastic on the original i+hone and metal on all later

models. The touchscreen furnishes the remainder of the user interface.

The display responds to three sensors 6four on the i+hone K8.  proximity sensor  deactivates the

display and touchscreen when the device is brought near the face during a call. This is done to

save battery power and to prevent inadvertent inputs from the user)s face and ears. n ambient

light sensor ad:usts the display brightness which in turn saves battery power. 50

axis accelerometer  senses the orientation of the phone and changes the screen accordingly,

allowing the user to easily switch between portrait and landscapemode.1K>3 +hoto browsing, web

 browsing, and music playing support both upright and left or right widescreen orientations.

1A?3 &nlike the i+ad, the i+hone does not rotate the screen when turned upside0down, with the

Dome button above the screen, unless the running program has been specifically designed to do

so. The 5.? update added landscape support for still other applications, such as email, and

introduced shaking the unit as a form of input. 1A231A43 The accelerometer can also be used to

control third0party apps, notably games. The i+hone K also includes a gyroscopic sensor ,

enhancing its perception of how it is moved.

software update in =anuary 4??B allowed the first0generation i+hone to use cell tower and ;i0

"i network locations trilateration, despite lacking 9+* hardware. The i+hone 59, 59* and K

employ 09+*, and the i+hone 59* and K also have a digital compass.1AA3 i+hone K*

supports 9CE** global positioning system in addition to 9+*.

Audio and output

Cne of two speakers 6left8 and the microphone 6right8 surround the dock connector  on the base of

the original i+hone. If a headset is plugged in, sound is played through it instead.

The bottom of the i+hone sports a speaker 6left8 and a microphone 6right8 flanking the dock

connector. Cne loudspeaker is located above the screen as an earpiece, and another is located on

the left side of the bottom of the unit, opposite a microphone on the bottom0right. The i+hone K

includes an additional microphone at the top of the unit for  noise cancellation, and switches the

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 placement of the microphone and speaker on the base on the unitRthe speaker is on the right.

#olume controls are located on the left side of all i+hone models and as a slider in the i+od

application.

The 5.A mm T%%* connector for the headphones is located on the top left corner of the device.The headphone socket on the original i+hone is recessed into the casing, making it incompatible

with most headsets without the use of an adapter.1AB31A>3 *ubsequent generations eliminated the

issue by using a flush0mounted headphone socket. 'ars equipped with an auxiliary :ack allow for

handsfree use of the i+hone while driving as a substitute for Hluetooth.

;hile the i+hone is compatible with normal headphones, pple provides a headset with

additional functionality. multipurpose button near the microphone can be used to play or pause

music, skip tracks, and answer or end phone calls without touching the i+hone. small number

of third0party headsets specifically designed for the i+hone also include the microphone and

control button. The current headsets also provide volume controls, which are only compatible

with more recent models. These features are achieved by a fourth ring in the audio :ack that

carries this extra information.

The built0in Hluetooth 4.xS<7%  supports wireless earpieces and headphones, which requires

the D*+  profile. *tereo audio was added in the 5.? update for hardware that supports 47+.1A23

1A43;hile non0sanctioned third0party solutions exist, the i+hone does not officially support

the CH< file transfer  protocol. The lack of these profiles prevents i+hone users from

exchanging multimedia files, such as pictures, music and videos, with other bluetooth0enabled

cell phones.

'omposite or component video at up to A@Li  and stereo audio can be output from the dock

connector using an adapter sold by pple. i+hone K also supports 2?4Kx@LB #9 output without

audio, and D7$I output, with stereo audio, via dock adapters. The i+hone did not support voice 

recording until the 5.? software update.

Battery

%eplacing the battery requires opening the i+hone unit and exposing the internal hardware

The i+hone features an internal rechargeable lithium0ion battery. ike an i+od, but unlike most

other mobile phones, the battery is not user0replaceable.1AB31L@3The i+hone can be charged when

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support video recording 6i+hone 59 does support video recording via third0party pp available

on the pp *tore8, however :ailbreaking allows users to do so. #ersion 4.? of i+hone C*

introduced the capability to embed location data in the pictures, producing geocoded 

 photographs.

The i+hone 59* has a 5.4 megapixel camera, manufactured by Cmni#ision, featuring autofocus,

auto white balance, and auto macro 6up to 2? cm8. It is also capable of capturing LK?xKB?

6#9 resolution8 video at 5? frames per second, although compared to higher0end ''7 based

video cameras it does exhibit the rolling shutter  effect. The video can then be cropped on the

device itself and directly uploaded to ouTube, $obile$e, or other services

The i+hone K introduced a A.? megapixel camera 64A>4x2>5L pixels8, also located on the back,

which is equipped with a backside illuminated sensor capable of capturing pictures in low0light

conditions, as well as an <7 flash capable of staying lit for video recording at @4?p resolution,

consideredhigh0definition. i+hone K is the first i+hone that has the high dynamic range 

 photography feature. In addition the i+hone K has a second camera on the front capable

of #9 photos and *7 video recording.

%egardless of the source, saved recordings may be synced to the host computer, attached to

email, or 6where supported8 sent by $$*. #ideos may be uploaded to ouTube directly.

The camera on the i+hone K* is capable of shooting B$+ stills and recording 2?B?p videos. Thecamera can now be accessed directly from the lock screen, and the volume up button as a shutter

trigger. The built0in gyroscope is able to stabilize the camera while recording video.

Heta code pulled from iC* A suggests that the next feature to be released will allow users to

capture a panoramic photo on their i+hone.

Cn all five model generations, the phone can be configured to bring up the camera app by

quickly pressing the home key twice. Cn all i+hones running iC* A it can also be accessed from

the lock screen directly.

Stora!e and SI"

n i+hone 59 with the *I$ slot open. The *I$ e:ector tool is still placed in the e:ect hole.

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The i+hone was initially released with two options for internal storage size! K 9H or B 9H. Cn

*eptember A, 4??@, pple discontinued the K 9H models. Cn "ebruary A, 4??B, pple added a

2L 9H model.1B@3 The i+hone 59 was available in 2L 9H and B 9H. The i+hone 59* came in

2L 9H and 54 9H variants and still is available in B 9H. The i+hone K is available in 2L 9H and

54 9H variants, as well as a newly introduced B 9H variant to be sold along side the i+hone K*

at a reduced price point. The i+hone K* is available in three sizes! 2L 9H, 54 9H and LK 9H. ll

data is stored on the internal flash driveF the i+hone does not support expanded storage through a

memory card slot, or the *I$ card.

9*$ $odels of the i+hone use a *I$ card to identify themselves to the 9*$ network. The *I$

sits in a tray, which is inserted into a slot at the top of the device. The *I$ tray can be e:ected

with a paperclip or the (*I$ e:ect tool( 6a simple piece of die0cut sheet metal8 included with the

i+hone 59 and 59*.1BB31B>3 In most countries, the i+hone is usually sold with a *I$ lock , which

 prevents the i+hone from being used on a different mobile network.1>?3

The 9*$ i+hone K features a $icro*I$ card that is located in a slot on the right side of the

device.

The '7$ model of the i+hone, like all '7$ phones, does not use a *I$.

iquid contact indicators

The i+hone is equipped with liquid contact indicators which change from white to red in color

when they come in contact with water. These suggest whether water damage has affected the

device. The indicators on the i+hone include a small disc which is located at the bottom of the

headphone :ack  and with the i+hone 59 and all later models an additional one is located at the

 bottom of the dock connector . The indicators are often used by pple employees to determine

whether the device qualifies for a warranty repair or replacement. If the indicators show that the

device was exposed to water, they may determine that the device is not covered by pple.

Dowever, the liquid contact indicators may be triggered through routine use, and if a device isworn while exercising, the sweat from an owner may dampen the indicators enough to indicate

water damage. Cn many other mobile phones from different manufacturers, the liquid contact

indicators are located in a protected location, such as beneath the battery behind a battery cover,

 but the indicators on an i+hone are directly exposed to the environment. This has led to criticism

of the placement of the indicators, which may also be affected by steam in a bathroom or other

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light environmental moisture. In response to these criticisms, pple made a silent change to their

water damage policy for i+hones and similar products. This new policy allows the customer to

request further internal inspection of the phone to verify if internal liquid damage sensors were

triggered.

Inc$uded items

The contents of the box of an i+hone K. "rom left to right! i+hone K in plastic holder, written

documentation, and 6top to bottom8 headset, &*H cable, wall charger.

ll i+hone models include written documentation, and a dock connector to &*H cable. The

original and 59 i+hones also came with a cleaning cloth. The original i+hone included

stereo headset 6earbuds and a microphone8 and a plastic dock to hold the unit upright while

charging and syncing. The i+hone 59 includes a similar headset plus a *I$ e:ect tool 6the

original model requires a paperclip8. The i+hone 59* includes the *I$ e:ect tool and a revised

headset, which adds volume buttons 6not functional with previous i+hone versions8. The i+hone

59 and 59* are compatible with the same dock, sold separately, but not the original model)s

dock. ll versions include a &*H power adapter, or (wall charger,( which allows the i+hone to

charge from an ' outlet. The i+hone 59 and i+hone 59* sold in Eorth merica, =apan,

'olombia, <cuador, or +eru include an ultracompact &*H power adapter.

# What prices to char!e :

+ricing is the process of determining what a company will receive in exchange for its products.

+ricing factors are manufacturing cost, market place, competition, market condition, and quality

of product. +ricing is also a key variable in microeconomic price allocation theory. +ricing is a

fundamental aspect of financial modeling and is one of the four +s of the marketing mix. The

other three aspects are product, promotion, and place. +rice is the only revenue generating

element amongst the four +s, the rest being cost centers.

+ricing is the manual or automatic process of applying prices to purchase and sales orders, based

on factors such as! a fixed amount, quantity break, promotion or sales campaign, specific vendor

quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or

lines, and many others. utomated systems require more setup and maintenance but may prevent

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 pricing errors. The needs of the consumer can be converted into demand only if the consumer

has the willingness and capacity to buy the product. Thus pricing is very important in marketing.

Step %

'hoose a reasonable price for your product, and estimate how much of your product you will sellfor that price. 'alculate the profit that will result for these estimates. "or example, if you are

opening a gourmet coffee shop, you may charge U4 for a cup of brewed coffee and expect to sell

2,??? cups per day. If your costs per cup are A? cents, your profit is 2,??? x U2.A?, or U2,A?? per

day.

Step &

*elect a higher price for your product, and revise your sales estimate 6usually downward8

accordingly. "or example, if you raise your price to U5 per cup, you may sell half as many cups if

there is nearby competition. our profits in this case are A?? x U4.A?, or U2,4A?. ou make more

 per cup, but your overall profits drop.

Step '

ower the price of your product, and increase your sales estimates accordingly. If you sell a great

cup of coffee for U2, you can expect to see customers lining out the doorGmdashFbut there are

only so many customers you can fit in your shop at any one time. *ome of them may give up and

go to the more expensive coffee shop on the next block. If you double your sales, you sell 4,???

cups of coffee, but you only make 4,??? x A? cents, or U2,???.

Step (

'onsider external factors that may affect your sales. "or example, perhaps you raise your price to

UA per cup, and you explain 6truthfully8 to your customers that it is because you are using a

 particularly exclusive coffee preparation method. our costs rise to U2 per cup, but your profits

are now UK. If you sell K?? cups, your profits are U2,L??, which are higher than your initial

estimate of U2,A?? from selling 2,??? cups of U4 coffee. nd servicing only K? percent as many

customers may have other benefits, such as a much less tiring day.

Step )

'ontinue developing price points and sales figures until you determine which mix maximizes

your profits. Then test your estimates against actual sales, and revise accordingly.

"or selection the prices there some rule has been followed. Dere 7escribe that!

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# ompetition based pricin!: *etting the price based upon prices of the

similar competitor products.

'ompetitive pricing is based on three types of competitive product!

+roducts have lasting distinctiveness from competitor)s product. Dere we can assume

The product has low price elasticity.

The product has low cross elasticity.

The demand of the product will rise.

+roducts have perishable distinctiveness from competitor)s product, assuming the product

features are medium distinctiveness.

+roducts have little distinctiveness from competitor)s product. assuming that!

The product has high price elasticity.

The product has some cross elasticity.

 Eo expectation that demand of the product will rise.

# ost P$us Pricin!: 'ost0plus pricing is the simplest pricing method. The firm calculates the

cost of producing the product and adds on a percentage 6profit8 to that price to give the selling

 price. This method although simple has two flawsF it takes no account of demand and there is no

way of determining if potential customers will purchase the product at the calculated price.

This appears in 4 forms, "ull cost pricing which takes into consideration both variable and fixed

costs and adds a V markup. The other is 7irect cost pricing which is variable costs plus a V

markup, the latter is only used in periods of high competition as this method usually leads to a

loss in the long run.

# reamin! or s*immin! : *elling a product at a high price, sacrificing high sales to gain a high

 profit, therefore WskimmingP the market. &sually employed to reimburse the cost of investment of

the original research into the product! commonly used in electronic markets when a new range,

such as 7#7 players, are firstly dispatched into the market at a high price. This strategy is often

used to target (early adopters( of a product or service. These early adopters are relatively less

 price0sensitive because either their need for the product is more than others or they understand

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method is used most often by public utilities, like electric and gas companies, and companies

whose capital investment is high, like automobile manufacturers.

Target pricing is not useful for companies whose capital investment is low because, according to

this formula, the selling price will be understated. lso the target pricing method is not keyed tothe demand for the product, and if the entire volume is not sold, a company might sustain an

overall budgetary loss on the product.

# Absorption Pricin!: $ethod of pricing in which all costs are recovered. The price of the

 product includes the variable cost of each item plus a proportionate amount of the fixed costs.

form of cost plus pricing

# Hi!h-ow Pricin!: $ethod of pricing for an organization where the goods or services offered

 by the organization are regularly priced higher than competitors, but through promotions,

advertisements, and or coupons, lower prices are offered on key items. The lower promotional

 prices are targeted to bring customers to the organization where the customer is offered the

 promotional product as well as the regular higher priced products.

# Premium +ecoy Pricin!: $ethod of pricing where an organization artificially sets one

 product price high, in order to boost sales of a lower priced product.

# "ar!ina$ ost Pricin!: In business, the practice of setting the price of a product to equal the

extra cost of producing an extra unit of output. Hy this policy, a producer charges, for each

 product unit sold, only the addition to total cost resulting from materials and direct labor.

Husinesses often set prices close to marginal cost during periods of poor sales. If, for example,

an item has a marginal cost of U2.?? and a normal selling price is U4.??, the firm selling the item

might wish to lower the price to U2.2? if demand has waned. The business would choose this

approach because the incremental profit of 2? cents from the transaction is better than no sale at

all.

# .a$ue Based Pricin!: +ricing a product based on the perceived value and not on any other

factor. +ricing based on the demand for a specific product would have a likely change in the

market place.

# /ermium Pricin!: "ermium is a business model that works by offering a product or service

free of charge 6typically digital offerings such as software, content, games, web services or

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other8 while charging a premium for advanced features, functionality, or related products and

services. The word (fermium( is a portmanteau combining the two aspects of the business

model! (free( and (premium(. It has become a highly popular model, with notable success.

# Odd Pricin!: In this type of pricing, the seller tend to fix a price whose latest digits are oddnumbers. This is done so as to give the buyers/consumers no gap for bargaining as the prices

seem to be less and yet in actual sense are too high. good example of this can be noticed in

telephone promotions of some countries like &ganda where instead of writing the price as sh.

K????, they write it as sh. 5>>>>. This pricing policy is common in economies using the free

market policy.

IPHONE Prices har!e:

The i+hone 59 is available from four authorized retailers! pple, TGT, Hest Huy, and

;almart. ll of them, except ;almart, charge the same price for the various i+hone models.

6;almart)s prices are U4 cheaper.8 ll of these prices require that you sign a new two0year

service contract with TGTF existing TGT customers who are eligible for an upgrade will get

these prices, too.

  B9H i+hone 59 6Hlack8! U2>>

  2L9H i+hone 59 6Hlack8! U4>>

  2L9H i+hone 59 6;hite8! U4>>

TGT subscribers who are not yet eligible for a handset upgrade will be charged the following

 prices!

  B9H i+hone 59 6Hlack8! U5>>

  2L9H i+hone 59 6Hlack8! UK>>

  2L9H i+hone 59 6;hite8! UK>>

ll existing TGT customers will be charged an upgrade fee of U2B, whether or not they are

eligible for the discounted prices.

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To get the i+hone K for the lowest price, you must sign up for a two0year service contract with

TGT or #erizon.

 Eew TGT customers will get these subsidized prices, as will existing TGT customers who

are eligible for an upgrade. 6TGT is offering early upgrades to some existing customersF this 

articlecan help you find out how to check your upgrade eligibility.8

#erizon ;ireless is offering the same subsidized prices to new subscribers and those eligible for

upgrades. <xisting customers who are eligible for upgrades can get these prices through the

carrier)s (Eew <very Two( program. Those who are not eligible for upgrades will need to pay

full price, but may be able to take advantage of #erizon)s Trade0In +rogram.

  2L9H i+hone K 6Hlack or ;hite8! U2>>

  549H i+hone K 6Hlack or ;hite8! U4>>

TGT subscribers who are not yet eligible for a handset upgrade will be charged the following

(<arly &pgrader( prices. 6These prices also require a two0year service commitment.8

  2L9H i+hone K 6Hlack or ;hite8! U5>>

  549H i+hone K 6Hlack or ;hite8! UK>>

If you don)t want to sign a service contract with TGT, you)ll pay more for the i+hone K. The Eo

'ommitment prices are!

  2L9H i+hone K 6Hlack or ;hite8! UA>>

  549H i+hone K 6Hlack or ;hite8! UL>>

#erizon customers who are not eligible for an upgrade will have to pay full retail price for the

i+hone K. These prices are!

  2L9H i+hone K 6Hlack or ;hite8! ULK>

  549H i+hone K 6Hlack or ;hite8! U@K>

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ll existing TGT customers will be charged an upgrade fee of U2B, whether or not they are

eligible for the discounted prices. #erizon ;ireless is not charging an activation fee for new

customers.

# How to accommodate chan!es and promote pro!ress:

+roducts accommodate changes and promotion is the act of advertising a good or service with

the short/long term goal of increasing sales. $any companies use different techniques to promote

their products through a vast array of communication mediums. In this day and age, there is not

necessarily one communication medium that is better than another simply because the most

affective medium is based on what type of product you are promoting. There is the physical form

of product promotion and the digital form, both of which require clear and concise textual

information about the product being advertised.

*ince the turn of the 42st century, many companies have been trying to utilize online social 

media for product promotion. *ome of the most popular forms of online social media

are "acebook,Twitter , and $y*pace. ;ithin an online social media network, companies have the

ability to advertise and promote their products to anyone, at anytime, anywhere in the world.

Hecause of the vast popularity of social media, companies have had great success on marketing

 products to the younger generation who otherwise might not have seen an ad in a newspaper or

on T#.

+roduct promotion is a very complex process. +rior to doing any promotion, you have to know

your product, your competitors, and your target market. Xnowing these will enable you to

determine the most appropriate marketing plan. I suggest that you pick up a book on the sub:ect

to get you started. ou may also consider hiring a consultant to create a marketing plan for you.

 I think its also important that as well as showing that your product is up to standard with the

competition, you make it very obvious and exciting what is different about your product.

IPHONE Accommodate chan!es:

2. $arkets are dynamic – what is efficient today may not be efficient tomorrow as

tastes, technology, and resource supplies change. +rices help signal those

changes.

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4. n increase in demand for some products will lead to higher prices in

5. Increased demand leads to higher prices that induce greater quantities of output

K. Digher prices lead to more profits and new firms entering the marketF lower 

A. The guiding function of prices is essential to a well0functioning market system.

In the absence of such signals, government or some similar institution would

have to decide where resources are allocated, but without knowing what people

in society want.

IPHONE Promote pro!ress:

2. The market system promotes technological improvements and capital

accumulation.

4. n entrepreneur or firm that introduces a popular new product will be rewarded

with increased revenue and profits.

5. Eew technologies that reduce production costs, and thus product price, will

spread throughout the industry as a result of competition.

K. 'reative destruction occurs when new products and production methods destroy

the market positions of firms that are not able or willing to ad:ust.

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#onc$usion:

+rofit maximization is the process of identifying the most efficient manner of obtaining the

highest rate of return from its production model. There are several different approaches to this

 pursuit of the highest profit margin that may be used by any corporation or business. $ostapproaches require that the company look closely at the costs of production, the current levels of

supply and demand, and the price that can be obtained for each unit while still attracting the

highest volume of consumers.

I+DCE< profit maximization also looks at factors outside the actual production process. "or

example, the focus may be on finding new ways to advertise and promote the product line,

especially if those approaches are likely to generate more revenue and cost less to maintain.

;hile the manufacturing facility may already be operating at full capacity, the right marketingcampaign can make it possible to move more products and thus increase the bottom line of the

 business. This in turn helps to increase the profits that are ultimately realized by the company.

Hy using the right advertising strategies and selling the goods at prices that consumers are

willing to pay, the goal of profit maximization efforts is reached, and the business can en:oy total

revenue that is at the highest level possible.