Explain why it would cost Rafael Nadal or Venus Williams more to leave the professional tennis tour and open a tennis shop than it would for the coach of a university tennis team to do so.Be sure to use the concepts of implicit cost, opportunity cost, and economic cost in your explanation. ![]() (a)What are the total explicit, total implicit, and total economic costs for the year? (b)What is accounting profit? (c)What is economic profit? (d)Using only the data given, would you say that the owner made a good economic decision to leave is job to start theorganic farm?Explain. Use that to do additional post to improve and we will re-assess our evaluation.Īt the beginning of the year, a software developer quit his job and gave up a salary of $90,000 per year in order to start Turnip Tom’s organic farm.A partial income statement for the first year of operation for Turnip Tom’s, Inc., is shown below: Revenues $98,000 Operating costs and expenses Cost of products sold$15,500 Selling expenses$6,500 Administrative expenses$3,200 Total operating costs$25,200 Income from Operations$72,800 Interest expense (bank loan)$9,500 Legal expenses$1,200 Income taxes$22,000 Net income$ 40,100 To get started, Tom spent $125,000 of his own savings to purchase land and equipment to be used for the farm.During this year, Tom could have earned a 7 percent return by investing in stocks of other business with risk levels similar to his farm. ![]() If you have not mastered all the insights, you will find feedback to help you improve your understanding. We will assess your progress on the topic, but that is not a grade. Use of one of these will mean zero credit on the exercise.Second, the discussions are a learning activity. Never use investopedia, wikipedia, or any other predia. Remember that the reference you select is part of your credibility. ![]() If you do use a reference, it must be an academically credible reference. You are creating a solution, but you may chose to use a reference. In general you will not actually need a reference to reply to a discussion. Make sure both the post and the reply focus on the questions asked.Clarification on policy on references. Specifically, you will be looking at defining Porter's Five Forces and applying this tool to the market structures and pressures on profits of a chosen group of firms.InstructionsReview the two groups of firms below:Group 1: the accommodations industry (e.g., Hilton, Marriott Bonvoy, InterContintental Hotel Group).Group 2: the wireless telecommunications industry (e.g., Verizon, AT&T, T-Mobile).In your discussion post, address the following:Which of these groups operates in a monopolistic competitive industry? Which operates in an oligopoly?How did you determine the classification of each group? That is, what are the key characteristics of each group that indicate the type of industry it operates in?Chose one of the groups and use Porter's Five Forces to analyze the pressures on profits for your chosen group's firms.If you want to dig deeper into how one of the firms views the challenges it faces, you might want to look at the firm's investor page.Note: In your discussion posts for this course, do not rely on Wikipedia, Investopedia, or any similar website as a reference or supporting source.To earn full credit for your discussion, you must complete one post and one follow-up or reply to a classmate. ContextFor this week's discussion, the focus will be on examining Porter's Five Forces as a tool for looking at the pressures on profits.
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