Question 2: Computer Chips Silicon Inc. is a manufacturer of computer microprocessor chips. Peachware Co. is a desktop computer manufacturer. On Monday, Peachware and Silicon enter a contract in which Silicon agrees to deliver 1,000 chips to Peachware on Friday; Peachware agrees to pay Silicon $200 per chip. Silicon's cost of manufacturing and delivering 1,000 chips is $150,000. Peachware's cost of manufacturing 1,000 computers is $150,000. (This is in addition to the cost of the microprocessor chip). Of this amount, $50,000 must be spent on Friday morning before the chips are delivered and which cannot be recovered if no chips arrive. If no chips arrive on Friday, Peachware must wait until Monday to call around to alternative suppliers to purchase chips. The price of chips on this "spot" market is $300 per chip. The market price for the nished Peachware computers is $900 per computer. Now, assume that Peachware paid for the chips at the time the contract was signed. Just before delivering the chips to Peachware at noon on Friday, Silicon receives a frantic call from IBN, another computer manufacturer. IBN has discovered that the chips they purchased from another supplier are defective and they need 1,000 chips to fulll an order for new computers. IBN is willing to pay $600 per chip, as they cannot wait till Monday to buy chips on the spot market. Questions: a) Calculate Peachware's prots if Silicon performs the contract and if Silicon breaches the contract. (Do not include any damage awards in your calculations.) b) What are expectation damages in this case? 0) What are reliance damages? (:1) Calculate Silicon's prots if Silicon performs the contract and if Silicon breaches the contract. (Do not include any damage awards in your calculations.) e) Is breach efcient? f) Under what measures of damages will efcient breach be achieved? Explain