Question part c

You are an executive for Super Computer, Inc {SC}. which rents out super computers. SC receives a xed rental paymenl per time period in exchange for the right to unlimited computing at a rate of P cents per second. SC has two types of polential customers of equal numberim businesses and 1D academic institutions Each business customer has the demand function 0 = 14 P. where Q is in millions of seconds per month; each academic institution has the demand: Cl : 10 P The marginal cost to SC of additional computing is 4 cents per second, regardless ot volume. a. Suppose that you could separate business and academic customers. What rental fee and usage fee would you charge each group? What would be your prots? (Round all answers to the nearest integer) For business users. the rental lee would be S 500,000' per month and the usage fee is 4 cents per second For academic instutions. the rental lee would be S 189,000' per month and the usage fee is 4 cents per second SC's total prots are S 6,300,000' per month. b. Suppose you were unable to keep the two types of customers separate and charged a zero rental fee. What usage fee would maximize your prots? What would be your prots? The prot maximizing usage fee is 6 cents per second. {round your answerto two decr'malplaces} SC's prots are S 3.200.000' per month. (round your answer to the nearest dollar) 1:. Suppose you set up one two-part tarH'lthat is' you set one rental and one usage fee that both business and academic customers pay, What usage and rental fees would you set? What would be your profits? The prot maximizing rental fee is 5 per month (round your answerto the nearest dollar) and the usage fee is cents per second. (round your answer to one decimal place) SC'S prots are 5 per month. {round your answerto the nearest dollar)