Use the prompt below to answer questions #29-30. A mall has a single shoe store, the incumbent firm. The incumbent may pay the mall’s owner an amount b to add to a clause to its rental agreement that guarantees the incumbent the exclusive right to be the only shoe store in the mall. If this payment is made, the landlord agrees to rent the remaining space only to a restaurant, a toy store, or some other business that does not sell shoes. The game tree below shows the two stages of the game involving the incumbent and its potential rival, another shoe store. In the first stage, the incumbent decides whether to pay b to prevent entry. In the second stage, the potential rival decides whether to enter. If it enters, it incurs a fixed cost fee of F to build its store in the mall.  

PART II: OPEN-ENDED QUESTIONS (70 POINTS)

Refer to the short-run total cost function in the previous question:  

The following scenarios provide examples of the various degrees of price discrimination related to the University of Notre Dame: Scenario 1: After the final exam schedule is released, students are able to determine when to book their flights home for the summer break. Airfares for students that purchase their tickets to a particular location on March 1st are lower than airfares for students that purchase their tickets on May 1st. Scenario 2: Notre Dame’s tuition and fees are $57, 699 (2020 – 2021). However, individual students often pay different prices as a result of financial aid. Scenario 3: To join Notre Dame’s Sorin Society, members must make annual lump-sum contributions to the university and they receive numerous benefits as a result. One benefit is the ability to purchase tickets to attend exclusive dinners at the Morris Inn after Notre Dame home football games. Members pay a price for each dinner they attend in addition to an annual fee of $1,500. The more dinners member attend, the more the annual fee is spread out over the dinners. Identify the degree of price discrimination for each of the aforementioned examples.

Use the prompt below to answer questions #20-23: Rise N’ Roll Bakery is the only producer of Amish-made donuts, pies, breads, and cookies in northern Indiana.The demand for a license that will enable someone to open a national franchise is: QD = 4,160 – (1/3)P where Q is the quantity of Rise N’ Roll national franchise licenses per year and  P is the price per unit. Rise N’ Roll Bakery total costs are:

The chart below depicts three of the firm’s relevant short-run production curves that were estimated by the consultant: Name the short-run cost curve that is derived from each short-run production curve. Please label your solutions accordingly (i, ii, iii).

Describe at least five financial principles you learned from your Proverbs project.

List the five categories of financial ratios discussed in the textbook and in the lectures, and then give the following additional information: How are the ratios in each category primarily used? Why do investors & creditors care about those kinds of ratios?  For each category give at least one specific ratio that fits into the category and give a brief description of what we learn from analyzing that specific ratio.

What are the similarities and differences between a sport organization using bonds to finance its future growth or issuing common stock to finance growth?

The feeling of belonging to __________ involves a sense that others care what happens to us and that we can depend on the people around us.