Work & Rest is an all inclusive hotel operating as a monopoly in a mid-sized community. The manager estimates that the hotel's total costs are described by the equation C = 0.05Q² + 10Q + 15000, where Q is the number or persons serviced and P is the price paid per person. Although it is located in a mid-sized community, it is close to a major highway that runs along the east coast. Often times, travelers would use the services of Work & Rest as a stop in their commute between two major citys. As such, the market demand for its service is described by the equation P = 160 - 0.2Q.

1. Given the current market conditions, Work & Rest's profit-maximizing quantity is Blank 1 and the price charged per person is Blank 2 ( 4 points)

Consider that after a series of reports from special interest groups, the local government decides to regulate Work & Rest by using the optimal pricing policy.

2. Given the successful implementation of the government's policy, Work & Rest's profit-maximizing quantity is Blank 3 (2 points)

3. Given the successful implementation of the government's policy, what is Work & Rest's profit at its profit maximizing quantity? Blank 4 (4 points)I

4. If the policy remains in place, and there are no further external shocks to the market, is it likely that West & Rest will continue to operate and provide service? (In the space provided enter will or will not)

In the long run, West & Rest Blank 5 continue to provide service in this mid-sized community. (2 points)

The Krasnapolski is a top-of-the-line hotel in Amsterdam, the Netherlands. Among their many services, they rent bicycles to guests. The bicycle checkout is open 24 hours per day 7 days per week and has 50 bicycles on hand. On average, 10 guests request a bicycle each day, arriving completely randomly at all times of the day during the spring and summer seasons. Guests keep bicycles for four days on average, with a standard deviation of two days. Remember: any time you see the term "random" associated with the job arrivals it means the coefficient of variation is equal to one; that is, the standard deviation in the time between arrivals is equal to the mean time between arrivals.

How long does a guest on average have to wait for a bike?

1. Approximately 47 minutes

2. Approximately 4 days

3. Approximately 24 hours

4. Approximately 0.033 hours

Herman Swayne is a waiter at the Dixie Hotel. In his first weekly pay in March, he earned $360.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($700.00), and the employer withholds the appropriate taxes for the tips from this first pay in March.

Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, married, 2 allowances), social security taxes, and state income tax (2%).

Enter deductions beginning with a minus sign (-).

Click here to access the Wage-Bracket Method Tables.

B. Jane Botosan operates a Hostelworld in an area near Amsterdam. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10 per person per night and the cost of food which is $5 per person per night.

Instructions

1. DeterminethenumberofrentalsandthesalesrevenueJaneneedstobreak even using the contribution margin technique.

2. If the current level of rentals is 4,000, by what percentage can rentals decrease before Jane has to worry about having a net loss?

3. Jane is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3 for food costs per person per night. Jane feels she can increase the room rate to $68 per person per night. Determine the number of rentals and the sales revenue Jane needs to break even if the changes are made.

1-1

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $67,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $52,200. She proceeds with opening the restaurant, and it begins operations on May 1.

Determine the amount that Henrietta can deduct in the current year for investigating these two businesses.

In your computations, round the per-month amount to the nearest dollar and use rounded amount in subsequent computations.

a. The deductible amount of investigation expenses related to expansion of her hotel chain into another city: answer :$67000

b. The deductible amount of investigation expenses related to opening a restaurant: $ ???

what is b answer? thank you

1-2

Monty loaned his friend Ned $19,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $16,150, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $16,150 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $6,460 and taxable income of $29,750. During the current year, Ned paid Monty $14,535 in satisfaction of the debt.

Determine Monty's tax treatment for the $14,535 received in the current year.

The nonbusiness bad debt of $16,150 would have been reported as a short-term capital loss , and $ ??? would be included in Monty's gross income this year.

1-1 b answer and 1-2 ??? answer.

Thank you for your help.

El Durazno is the only resort hotel on a small desert island off the coast of South America. It faces two market segments: bargain travelers and high-end travelers. The demand curve for bargain travelers is given by ??? = 400 ? 2???. The demand curve for high-end travelers is given by ??? = 500 ? ???. In each equation, Q denotes the number of travelers of each type who stay at the hotel each day, and P denotes the price of one room per day. The marginal cost of serving an additional traveler of either type is $20 per traveler per day.  

a. Under the assumption that there is a positive demand from each type of traveler, what is the equation of the overall market demand curve facing the resort?

b. What is the profit-maximizing price under the assumption that the resort must set a uniform price for all travelers? For the purpose of this problem, you may assume that at the profit-maximizing price, both types of travelers are served. Under the uniform price, what fraction of customers are bargain travelers, and what fraction are high end?  

c. Suppose that the resort can engage in third-degree price discrimination based on whether a traveler is a high-end traveler or a bargain traveler. What is the profitmaximizing price in each segment? Under price discrimination, what fraction of customers are bargain travelers and what fraction are high end?  

d. The management of La Durazno is probably unable to determine, just from looking at a customer, whether he or she is a high-end or bargain traveler. How might La Durazno screen its customers (i.e., cause them to self-identify type through their choices) so that it can charge the profit-maximizing discriminatory prices you derived in part (c)?

It’s the year 1995 and John Smith is staying overnight at a hotel before an important meeting the next morning. He asked the customer service desk to give him a 7 am wake-up call. The probability that he gets the call is 0.9. If he gets the call, the probability that he will arrive for the meeting on time is 0.9. If the call is not given, the probability that he will be on time for the meeting is 0.4.
a) Calculate the probability that John Smith will not arrive on time for the meeting.
b) If John Smith is on time for the meeting, what is the probability that the wake-up call was not made?

Four firms in an industry are considering forming a cartel. They meet in a smoke-filled hotel room to discuss the terms of the cartel and to weigh their options. Each firm has marginal cost given by MC=20+2q. Demand for the market is given by Q=400-2p.

1. What is the supply for each firm? For all four firms?

2. Suppose the firms compete. What would be the resulting market prices and quantities under competition? How much would each firm produce and what would be their producer surplus?

3. Now suppose that the firms successfully form a cartel. They agree to divide the cartel quantity equally among the four firms. How much will each firm produce under the cartel? What will be the producer surplus of each firm?

4. One of the firms is considering cheating on the cartel agreement. Discuss how the firm could cheat on the cartel agreement and what benefits the firm gets from cheating. [Hint: show with equations or a graph how the firm’s profits would change, assuming that the other three firms stick to the cartel agreement.

Marriott Hotel data breach, explain with a report on it that answers the following question; When and where was the breach? What was the cause of the breach (be specific)? Who was affected? How severe were the effects of the data breach on the individuals affected? Were there other potential effects (e.g. identity theft) that haven't been documented yet? How did the company respond to the breach? Was there anything the company failed to do that would have prevented it? Did the company undertake any actions to prevent this (or similar things) from happening again? Was there a public outcry over the company's response to the breach? How did the company address the public's reaction? What consequences did the company or individuals at the company suffer (firings, legal liabilities, etc.)? What recommendations would you make to prevent a similar breach from occurring?.