The Cost of a Breakup

Tom isn’t happy with Mona-Lisa anymore, but he isn’t brave enough to break up with her. He decides to seek out help from his previous girlfriend, Ann, but it’s going to cost him. Ann initially refuses, but agrees once he offers her his chenille blanket that she likes.

See more: 

Tom Wants to Quit

Tom’s Bistro’s soft opening didn’t go well, so he thinks it’s time to quit. Even though Ron recommends sticking it out, Tom is phased by the sunk cost fallacy; he loves quitting! April comes to the rescue and convinces him to at least try a full opening.

See more: 

The New Sommelier

Craig has to keep it together in the face of very strange requests during his interview to be the sommelier for Tom’s Bistro. While professional sommelier’s are known for being able to pair wines and meals, they must maintain their composure when customers ask for something different. While some may have odd preferences, its important to respect others’ utility functions.

See more: 

The Tent Mogul

Ben and Tom aren’t happy with the high tent prices and add-ons at one tent rental shop, so they try to go to a competitor only to find that all of the tent rental places have the same owner who is happy to exploit his market power. While the owner tries to differentiate their product through branding, they have essentially monopolized central Indiana’s tent rental industry.

See more: 

Ron’s Chairs

Ron’s chair becomes popular after being featured in Bloosh, and Annabelle wants to talk about licensing his designs and scaling up production. Instead of having each handmade by Ron Swanson, they can be mass-produced by foreign labor.

See more: 

Tommy’s Closet vs. Rent-A-Swag

Tom gets an offer that someone is interested in buying his business. After some though, Tom chooses not to sell his clothing rental business and then finds out that the potential buyer will now try to drive him out of business by setting up across the street. Monopolistic competition allows for easy entry and exit into a market that is profitable and results in a reduction in long term profits. This is also a good example of the Hotelling Model where similar firms setup near each other to split the market.

See more: