1. 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 P cents per second. The demand of each potential customer of SC is Q=10-P, where Q is in million of seconds per month. The marginal cost to SC of additional computing is 2 cents per second.

What rental fee and usage fee should SC charge in order to maximize its profits (two-part tariff pricing rule).