Mango Electronics is introducing a new music device called SuperPod. The annual demand of this new product faced by Mango Electronics is given by the following demand curve: annual demand = 2,000,000 2,000, where is the unit selling price. It costs Mango Electronics $100 to produce each SuperPod.

(a) If Mango Electronics sells the product directly to end consumers, what is the optimal unit selling price, , that Mango Electronics should set? What is Mango Electronics optimal annual profit obtained from this new product?

(b) If Mango Electronics does not sell the product to the end consumers, but it sells it to a retailer at a unit price of , then what is the optimal selling price that the retailer should set? What is optimal annual supply chain profit (i.e., Mango Electronics profit plus the retailers profit) obtained from this new product?

(c) The difference between the results of (a) and (b) indicates that double marginalization leads to a significant loss in supply chain profit. Explain how Mango Electronics can employ a volume-based discount to eliminate the loss of profit due to double marginalization. (need the detailed calculations. Also need to determine the upper and lower limits of the discount price and specify the condition(s) for the retailer to receive the discount)