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You are an executive for Super Computer, Inc. ( SC ) , which rents out super computers. SC receives a fixed rental payment per time
You are an executive for Super Computer, Inc. SC which rents out super computers. SC receives a fixed rental payment per time period in exchange for the right to unlimited computing at a rate of cents per second. SC has two types of potential customers of equal number businesses and academic institutions.
Each business customer has the demand function:
where is in millions of seconds per month; each academic institution has the demand:
The marginal cost to of additional computing is cents per second, regardless of 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 profits? Round all answers to the nearest integer
For business users, the rental fee would be $ per month and the usage fee is cents per second.
For academic institutions, the rental fee would be $ per month and the usage fee is cents per second. SCs total profits are $ per month.
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