Catalina is the only supplier of surfboards, giving her a monopoly. She sells surfboards to Big Kahuna with demand q = 40 p and Lil Kahuna with demand q = 48 4p, where q captures units of surfboards and p is the price per unit. Catalina's marginal cost is 8 for each surfboard.

a. (4 points) Suppose Catalina uses multi-market price discrimination. What are her total profits for each market?

b. (6 points) Assume Catalina instead creates two different surfboard bundles to sell, a large and small bundle. In this market customers can only buy one of the two bundles. If she aims to sell one bundle to each person, find (i) the optimal size of each bundle, (ii) the optimal price of each bundle, and (iii) total profits for each bundle?