Profit

1. a. The rack up explicit cost is $793,000($970,000-$177,000). The total unsaid cost is $190,000($175,000+. 15X$100,000). The total scotch cost is $983,000($793,000+$190,000). b. The accounting addition in 2010 is $177,000($970,000-$793,000) c. The economic profit in 2010 is $-13,000($970,000-$793,000-$190,000). d. The birther should non leave his task because the economic profit is negative, which means he volitioning agnize less if he does his own personal line of credit. 2. a.The grammatical case of agency problem that is involved present is principal-agent problem. Marriott wants to maintain a certain take aim of quality at all of its hotels, tho in order to do that it would train capital investment by franchisees. By investing in the hotels, the franchisees are losing profits. b. I believe that Marriott needs to worry close the quality of all the hotels whether they are possess or franchised. In order to suffer customers satisfied and coming back to lie at a Marriott they need to follow a salutary reputation. c.Marriott would tend to own its hotels in resort areas because the people give be oftentimes focused on the quality and upkeep of the hotel itself. By Marriott providing unattackable quality in resort areas it go forth help them gain more business in downtown areas due to the customers old pay off. In downtown areas it is also more difficult to find a graduate(prenominal) quality hotel. If people do not have a good experience at a Marriott then the adjacent time they need to stay in a hotel they volition travel come along down the street to a assorted hotel due to the poor quality of the preceding(prenominal) Marriott stay.The reputation of the Marriott depends highly on how much business it exit have. A good reputation will lead to cracking profits. 3. a. I would promise the worth of wine to return as well. b. I would channel the impairment of wine to change magnitude because the measuring stick demande d for wine will enlarge. c. I would postulate the harm of wine to decrease as well because the quantity demanded will attach due to people having a job and making more money. d. I would anticipate the price of wine to decrease.A rise in the price of cheese will decrease demand for cheese, which should decrease demand for wine which in turn will decrease the price for wine. e. I would expect the price of wine to ontogenesis due to the improver in prices of the wine bottles. f. I would expect the price of wine to decrease since it will be cheaper to produce. g. I would expect the price of wine to decrease. h. Since older people whoop it up less wine, demand would be go in this case. As a result, the price would decrease. 4. a. 5.I believe that the equilibrium price of products gaining a presence on the Internet will increase because the quantity demanded will be higher and the equilibrium output will also increase. Since it will be bracing to the internet the demand will inc rease which will make the price increase as well. 6. MC=MR 1000-10P=40P 50P=1000 P= 1000/50 P=20 units (reduction of pollution units) 7. a. MB=MC MC is w=200 and MB from hiring a second worker is MB(2)=(30-20)X25=250 TB=(50-20)X25-(200X2)=750-400=350 The squiffy will hire two guards. b.The reach from the first guard is B(1)=(50-30)X25=20X25=500. The maximum hire to the first guard the firm will be willing to pay is $500. c. MC=200 MB(4)=(14-8)x50=6X50=300 TB=(50-8)X50-(4X200)=1300 consequently the firm should hire 4 guards. 8. a. set=MC 70=40+0. 005Q Q=6000 The MR for each unit of output is the same at $70. b. TR=70X6000=$420,000 TC=10,000+(40X6000)+(0. 0025X(6000)2)=$340,000 Total Profits=$420,000-$340,000=$80,000 c. MR=MC thitherfore providing one more unit of output will earn $70 and cost $70 so there would be no profit.