6. (30 points) Tesla manufacturers electric cars. Suppose that Apple signs a contract with Tesla to provide Tesla with the computer and operating systems necessary for 70,000 self-driving cars. In the contract Tesla agrees to pay Apple $50 million. Tesla values the computer and operating systems at $60 million. At the time of the writing of the contract Apple anticipates that it will cost Apple $40 million to produce the parts. Suppose that due to legislative changes affecting the H18 visa program through which a large portion of Apple's engineers come to the U.S., Apple's costs increase to $55 million. a. Is it efficient for Apple to breach? Explain? b. What penalty for breach of contract will give Apple optimal incentives for performance? C. Suppose that Tesla sees the contract as a new opportunity and makes considerable investments that increase the value of the contract to Tesla by $5 million. What problem can be introduced if courts follow a practice of increasing damages by $5 million in a situation like this? Explain d. Give two reasons why it would make sense for Tesla and Apple to not write a clause into the contract specifying what to do in an event like this (legislative change affecting costs). e. If the court wants to fill the gap in the contract with an efficient default rule, who should they order to bear the loss and why