a. Create a spreadsheet describing Amazon's output and pricing choices with respect to the Kindle e-reader. (Use the template from Problem S1 with price equation: P = 294 − 35Q and MC = $126.) Use your spreadsheet optimizer to find the combination of output and price that maximizes profit.
b. Now include the extra net revenue from e-book sales, $100 per Kindle. (Compute this total in cell G9 according to the formula: = 100*B7.) Finally, in cell H9, compute total profit (from both Kindles and e-book sales). What combination of Kindle output and price maximizes Amazon's total profit? Explain why Amazon should cut its price relative to the price in part (a).