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
- If Blotto engages in standard pricing, what is the profit-maximizing price and quantity?
- If Blotto practices block pricing, how many sheets of plywood should the company include in a bundle?
- What price should it charge for a bundle of plywood?