題組內容

II. If the marginal cost for each chair is \( \mathrm{MC} = \$ 4 \), and there is no fixed cost. Suppose Max wants to improve its profit by implementing block pricing (assuming just 2 blocks), answer the following questions:


(b)(6%) Find the profit-maximizing quantity and price for block 1 \( (P{1}, Q{1}) \) and for block 2 \( (P{2}, Q{2}) \).