You are the owner of Dinghy's Restaurant, the only restaurant and bar at Honeymoon Beach, which...

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You are the owner of Dinghy's Restaurant, the only restaurant and bar at Honeymoon Beach, which is located on Water Island, just south of St. Thomas in the U.S.V.I. People get there by water taxi from Crown Bay marina. The beach is a steep walk from the ferry dock, but you drive customers from the dock to your establishment for free in an open-air taxi. The drinks are great, the food is fabulous, the water is beautiful, and the beach is gorgeous! Tourists and locals flock to your restaurant most of the year and you're only closed for Christmas day. You're lucky in that years ago, you bought a small portion of the beach and the building for a great price from the government (which owned the building and beach since it was used for decades as a dock and customs house for foreign ships), paying cash you received from the sale of your previous business. Can you say "No Mortgage!!!!"? You use a cruise ship-style model (you do not sell items individually): People pay a single price for a wristband that entitles them to an all-you-can-eat buffet and up to 10 drinks (beer, mixed-drinks, soda pop, water, or juice). If someone wants more drinks, they have to buy another wristband. The current price for a wristband is $75. Your average daily production function is Q = 12.22K 0.25 0.90, where Q = the number of wristbands. You are currently using 5 units of capital and 17 units of labour and are profit-maximizing. Because your workers get paid significant tips, you pay them a fixed amount per day. Your total cost function is TC = 5,000 + 42q. Assume market demand is linear. A. (10 points) What are your current profits? You are the owner of Dinghy's Restaurant, the only restaurant and bar at Honeymoon Beach, which is located on Water Island, just south of St. Thomas in the U.S.V.I. People get there by water taxi from Crown Bay marina. The beach is a steep walk from the ferry dock, but you drive customers from the dock to your establishment for free in an open-air taxi. The drinks are great, the food is fabulous, the water is beautiful, and the beach is gorgeous! Tourists and locals flock to your restaurant most of the year and you're only closed for Christmas day. You're lucky in that years ago, you bought a small portion of the beach and the building for a great price from the government (which owned the building and beach since it was used for decades as a dock and customs house for foreign ships), paying cash you received from the sale of your previous business. Can you say "No Mortgage!!!!"? You use a cruise ship-style model (you do not sell items individually): People pay a single price for a wristband that entitles them to an all-you-can-eat buffet and up to 10 drinks (beer, mixed-drinks, soda pop, water, or juice). If someone wants more drinks, they have to buy another wristband. The current price for a wristband is $75. Your average daily production function is Q = 12.22K 0.25 0.90, where Q = the number of wristbands. You are currently using 5 units of capital and 17 units of labour and are profit-maximizing. Because your workers get paid significant tips, you pay them a fixed amount per day. Your total cost function is TC = 5,000 + 42q. Assume market demand is linear. A. (10 points) What are your current profits?