You are an executive for Seattle City Light and your company is selling electricity. The demand for electricity is given by P = 230 - 2Q, and you also know that MC = ATC = 20. There are no fixed costs. You are implementing a volume discount. Let Q1be the largest quantity of electricity for which the first block rate applies so that P1= 230 - 2Q1. Let Q2be the largest quantity purchased (so that the second block rate will apply between Q1and Q2) so that P2= 230 - 2Q2.(if you use the graphical/visual approach to find the prices, please very briefly explain how you found the two prices; show all other calculations)

a. What are the profit maximizing prices (P1and P2)? What are the corresponding quantities (Q1and Q2- Q1)?

b. What is the total profit ()?