2. Bundling: Your company sell socks in two different packages. One is SMALL, containing a single pair of socks. The other is LARGE, containing two pairs of socks - so a LARGE is really a bundle of two SMALL packages. Each pair of socks has a marginal cost of $4. You have two customers. The table below shows each customer's reservation prices for different quantities of socks (neither customer wants a third pair)- Reservation Prices Consumer 1 Consumer 2 First pair $10 $12 Second pair $6 $3 A. Small packs: Suppose you sell only SMALL packs. Let A be the price you charge for a SMALL package. i. What value of Pi will maximize your profit? ii. How many SMALL packs will each customer buy at your Pi? iii. What is your profit at this price? B. Pure bundles: Now suppose you only sell LARGE packs. This means that customers cannot buy an individual pair of socks. i. What is each customer's willingness to pay for a LARGE pack? ii. What price (P2) will maximize your profit? Which customers buy the LARGE pack at your P2? iii. What is your profit at P_? C. Mixed bundles: Now suppose you sell both SMALL and LARGE packs of socks at prices Pi and Py. i. What prices Pi and Py will maximize your profit? ii. What does each customer buy at your prices P and P? iii. What is your profit at your prices P, and P_