Economic Plan for a BusinessROUND 1I have decided to produce seven (7) units based on the initial guidelines requiring the production of less than 20 units. The guidelines also stated that in previous production runs I had produced between 1 and 10 units. The next factor was market research and the composition of a total of six companies producing the same product. This led me to determine that the market demand forecast would be between $50,000 and $100,000 per unit when considering all six companies. After selecting the total number of units seven and the other companies populated with lesser units, I determined that I would receive the largest market share overall. My production costs per unit are $25,000 x 7 units = $175,000, total units sold 7 times market asking price $50,000 = $350,000. Based on a profit of $350,000 - $175,000 = $175,000 on my operating costs. By discussing the relationship between demand and the price of units supplied, a direct relationship is established with the cost of supply and demand. This law establishes a direct relationship between the quality required of the merchandise and the unit price..