An old school friend has reached out to you with a problem. She has successfully been running Sam's Bakery in Miami FL for a few years, specializing in Scottish baked goods. An Mrs. Fields's is opening across the street next week and your friend is concerned about the impact on her thriving cookie trade. Sam's has a loyal base of local customers who love high quality cookies (the marginal cost of each cookie is $2 for Sam's, due to the high-quality ingredientsl), but tourists may be enticed by Mrs. Fields's prices and national brand recognition. A classmate of yours specializing in marketing has identied that the monthly demand for Sam's cookies aer Mrs. F ields's opens is QF = 2,400 200PF + sup, where PF is Sam's price, PA is Mrs. F ields's price for a cookie, and 0,; is the monthly quantity demanded for Sam's cookies. You know, from your University of Miami education, that franchises like Mrs. F ields's set prices at the regional level and do not consider small local competitors, such as Sam's Bakery. Specically, Mrs. Fields's currently charges $5 for their classic cookie in all stores in the FL region. Sam's is currently selling their specialty cookies for $9.50. a. What price would you recommend Sam's charges for cookies? b. Sam's Bakery is also weighing up a deal with Door dash. Your classmate who specializes in marketing estimates that the monthly demand for Sam's cookies on Door dash is 9,; = 1,300 100.06 Where P5 is the price Sam's charges on Door dash and Q; is the monthly quantity demanded for Sam's' cookies through Door dash. The Door dash deal would involve Sam's paying $1 per cookie to Door dash, as well as a fixed $1,500 monthly fee. What price should Sam's charge on Door dash? I._s the Door dash a good deal? c. You remember that some local Sam's customers may decide to purchase through Door dash if the deal went ahead. Upon further investigation, you find that 200 customers who purchased directly would switch over to buying through Door dash (these customers were already counted in the demand given in part b). Should you go ahead with the Door dash deal, assuming the prices you found in parts (a) and (b) are still optimal? Sam's Bakery has decided against the Door dash deal and Mrs. Fields' has opened. The remainder of this question posits different scenarios and asks for your recommendations. IMPORTANT: Consider each of the following scenarios independently. Explicit articulations are not required [or even possible). However, please explain your reasoning clearly. d. Sam's has received a subsidized loan as part of the Federal Small Business Stimulus Program. After refinancing, Sam's i_s_a_b_le to save $800 per month on loan payments. Would you recommend that Sam's Bakery increase the price of its cookies, decrease it, or keep the same? What will happen to Sam's prot? e. Sam's Bakery bas been featured by the American Voice as an exemplary local business. College students start lining up to buy cookies at Sam's in between classes and the trend is likely to be permanent. Would you recommend that Sam's Bakery increase the price of its cookies, decrease it, or keep the same? What will happen to quantity and profit? f. Miami passes a new law, doubling the minimum wage. Sam's Bakery has no employees and is staffed only by your iend. Mrs. Fields's and other fast-food chains are rumored to be increasing prices in response to the legislation. If this rumor is true, would you recommend that Sam's increase the price of its cookies, decrease it, or keep the same? What will happen to Sam's' prot