Blotto Brothers Lumber Supply sells lumber to local construction companies. Blotto has estimated that the demand for plywood by home contractors is given by the equation Q=51?0.10P Blotto’s total cost of procuring and packaging plywood for delivery to each customers is TC=10Q
a. If Blotto engages in standard pricing, what is the profit-maximizing price and quantity?
b. If Blotto practices block pricing, how many sheets of plywood should the company include in a bundle?
c. What price should it charge for a bundle of plywood?
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