Identify firms that periodically shut down their operations. What are the conditions that exist when they shut down their operations and the conditions that exist when they resume their operations?

a.The company downside concerned on this state of affairs is the principal-agent downside. The massive resort chains, similar to Marriott, are the principals and the personal house owners or franchisees are the brokers. The principals need the brokers to make upgrades to their lodges to take care of high quality and defend the fame of the chain, however the brokers might not have the identical incentives or might not prioritize the upgrades in the identical manner.

b. Marriott might fear concerning the high quality of lodges it franchises as a result of the standard of those lodges displays on the fame of the Marriott model. If the standard of the franchised lodges is poor, it may injury the fame of the Marriott model and probably result in a lower in enterprise for all Marriott lodges.

c. A sequence similar to Marriott might are likely to personal its lodges in resort areas, similar to nationwide parks, the place there may be little repeat enterprise, and franchise in downtown areas, the place there may be lots of repeat enterprise, for just a few causes. Firstly, in resort areas, there could also be fewer choices for lodging and thus much less competitors, which may make it extra enticing for the chain to personal the resort reasonably than franchise it. Moreover, in these areas, there could also be much less of a fame impact as a result of there may be much less repeat enterprise, so the chain will not be as involved concerning the high quality of the resort. In downtown areas, then again, there could also be extra competitors and a better chance of repeat enterprise, so it might be extra helpful for the chain to franchise the resort so as to unfold the danger and prices throughout a number of events. Moreover, the motivation for franchises to take care of high quality could also be increased in these areas as a result of fame impact.

a. The value of a comparable French wine lowering would probably result in a lower within the value the California vineyard receives for its wine. It is because the lower within the value of the French wine may result in a rise within the demand for the California wine as shoppers change to the cheaper choice. This shift in demand would result in a rise within the amount of California wine demanded and probably a lower within the value.

b. The opening of 100 new wineries in California may result in a rise within the provide of wine and probably a lower within the value the vineyard receives for its wine. It is because the rise within the provide of wine may result in an extra provide and a rise in competitors, which may result in a lower within the value of wine.

c. The lower within the unemployment price in the USA may result in a rise within the value the vineyard receives for its wine. It is because a lower in unemployment may result in a rise in client revenue and probably a rise within the demand for wine. This shift in demand may result in a rise within the value of wine.

d. The rise within the value of cheese may result in a rise within the value the vineyard receives for its wine. It is because wine and cheese are sometimes consumed collectively, and a rise within the value of cheese may result in a lower within the demand for wine as shoppers change to cheaper choices. This shift in demand may result in a lower within the amount of wine demanded and probably a rise within the value.

e. The rise within the value of a glass bottle on account of new authorities antishatter laws may result in a rise within the value the vineyard receives for its wine. It is because the rise in the price of producing the wine may result in a rise within the value of the wine so as to keep profitability.

f. The invention of a brand new wine-making know-how that reduces manufacturing prices may result in a lower within the value the vineyard receives for its wine.

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