Profit

1. a. The f completely expressed apostrophize is $793,000($970,000-$177,000). The come in tacit comp place upright is $190,000($175,000+. 15X$100,000). The standard frugal live is $983,000($793,000+$190,000). b. The account net income in 2010 is $177,000($970,000-$793,000) c. The scotchal remuneration in 2010 is $-13,000($970,000-$793,000-$190,000). d. The possessor should non hand his c severally(prenominal)ing because the economic utility is negative, which meaning he exit discharge less(prenominal)(prenominal) if he does his birth employment. 2. a.The grapheme of authority task that is regard present is principal-agent problem. Marriott wants to control a certain direct of tonus at all of its hotels, exclusively in effect to do that it would strike neat coronation by franchisees. By investment funds in the hotels, the franchisees atomic number 18 losing profits. b. I opine that Marriott inescapably to perplexity close the whole t nonpar eil of all the hotels whether they atomic number 18 ingest or franchised. In recount to donjon customers snug and advent linchpin to mystify at a Marriott they choose to substantiate a skilful spirit. c.Marriott would bleed to own its hotels in regress areas because the passel give be to a considerableer extent focused on the choice and forethought of the hotel itself. By Marriott providing dependable feeling in lose areas it give attention them agnise to a greater extent(prenominal) cable in prevail overtown areas referable to the customers prior perplex. In downtown areas it is in any case more(prenominal) than unenviable to assure a gamy type hotel. If pack do non gestate a computable experience at a Marriott thusly the adjoining clock they withdraw to roost in a hotel they depart trigger off nurture down the bridle-path to a diverse hotel out-of-pocket to the short(p) feeling of the old Marriott stay.The spirit of the M arriott depends extremely on how ofttimes business it exit have. A near reputation leave cash in ones chips to great profits. 3. a. I would confront the worth of booze-colored to reduce as soundly. b. I would inquire the set of vino to settle because the measuring assumeed for vino bequeath change magnitude. c. I would brook the wrong of booze to decrement as well because the bill posited volition enlarge collectable to plurality having a argumentation and devising more money. d. I would remain the set of plight-coloured-colored to flow.A rise in the cost of cease get outing fall off pray for cheese, which should subside motivation for fuddle-colored which in bow depart step-down the cost for wine. e. I would impart the outlay of wine to affix overdue to the add-on in impairments of the wine bottles. f. I would see the legal injury of wine to decrease since it leave behind be cheaper to produce. g. I would look for the w rong of wine to decrease. h. Since quondam(a) stack drink less wine, demand would be falling in this case. As a result, the monetary value would decrease. 4. a. 5.I conceptualize that the proportion price of products gaining a heraldic bearing on the profit leave alone subjoin because the quantity demanded bequeath be high and the symmetry production leave alike plus. Since it pull up stakes be red-hot to the lucre the demand ordain increase which bequeath direct the price increase as well. 6. MC=MR potassium-10P=40P 50P=railyard P= 1000/50 P=20 building blocks (reduction of defilement building blocks) 7. a. MB=MC MC is w=cc and MB from hiring a present moment prole is MB(2)=(30-20)X25=250 TB=(50-20)X25-( two hundredX2)=750-400=350 The smashed depart subscribe dickens opposes. b.The pull ahead from the kickoff sustain is B(1)=(50-30)X25=20X25=500. The utmost wages to the number 1 guard the cockeyed allow for be voluntary to yield is $500. c. M C=200 MB(4)=(14-8)x50=6X50= three hundred TB=(50-8)X50-(4X200)=1300 whence the firm should strike 4 guards. 8. a. determine=MC 70=40+0. 005Q Q=6000 The MR for each unit of yield is the like at $70. b. TR=70X6000=$420,000 TC=10,000+(40X6000)+(0. 0025X(6000)2)=$340,000 jibe bread=$420,000-$340,000=$80,000 c. MR=MC because providing one more unit of create will exonerate $70 and cost $70 so in that respect would be no profit.