2. In a monopoly or monopolistic market, block pricing is the practice of reducing the price of a good when the customer buys more of it. Consider the demand curve below for Walmart's photo holiday cards. Assume this is the demand curve of just one customer and all customers have this same demand curve. ($/1 1) If Walmart follows the monopoly single pricing rule, what would be the profit-maximizing price per card and quantity sold? What is Walmart's producer surplus under a single price? 2) If Walmart can prevent resale, however, it doesn't have to charge a single price. Suppose it offers the first 100 holiday cards for sale at 25 cents each, but then allows a consumer to buy as many as 25 more cards (numbers 101 to 125 ) at a lower per-unit price of 20 cents each. Would the customer accept this offer? Explain. 3) If Walmart keeps offering discounted prices on larger quantities. For example, it could offer the next 50 cards, up to the 175 th photo card, for 10 cents each. Would the consumer take the deal? Would Walmart also be better off? Explain 4) Note that the price strategy just described could also be expressed in the following way: 100 units are $25,125 units are $30, and 175 units are $35. What would be the total producer surplus if the consumer will opt to purchase 175 cards at a price of $35 ? 5) What is the difference between the block pricing strategy and price discrimination