a. The total explicit cost is $793, 000($970, 000-$177, 000). The total implicit cost is $190, 000($175, 000+. 15X$100, 000). The overall economic costs is $983, 000($793, 000+$190, 000). m. The accounting profit this year is $177, 000($970, 000-$793, 000) c. The economic profit this year is $-13, 000($970, 000-$793, 000-$190, 000). d. The particular owner should not leave his job because the economic profit can be negative, this means he will make less if perhaps he really does his individual business. installment payments on your
a. The type of agency problem that is involved here is principal-agent problem. Marriott wants to maintain a certain level of quality at all of its resorts, but in so that it will do that it might require capital investment by simply franchisees. By purchasing the hotels, the dispenses are dropping profits. n. I believe that Marriott must worry about the standard of all the resorts whether they happen to be owned or perhaps franchised. In order to keep customers satisfied and coming back to stay at a Marriott they need to retain a good reputation. c. Marriott would tend to individual its resorts in hotel areas as the people could be more focused on the product quality and repair off the motel itself. By Marriott featuring good quality in resort areas it will help all of them gain more business in downtown areas due to the customers' previous knowledge. In downtown areas also, it is more difficult to locate a high quality hotel. If persons do not have an excellent experience at a Marriott then the next time they need to stay in a resort they will travel around further across the road to a different hotel due to the low quality of the prior Marriott stay. The trustworthiness of the Marriott depends very on how very much business it'll have. A good reputation can lead to wonderful profits. three or more.
a. I would personally expect the price of wine to decrease as well.
m. I would expect the price of wine beverage to decrease as the quantity demanded for wine beverage will increase. c. I would anticipate the price of wine to decrease too because the amount demanded increases due to persons having a work and producing...