You are the manager of San Diego Computers, a manufacturer of computers that meet the specifications required by the city. Over 90% of your clientele consists of college students. San Diego computers is not the only firm that builds computers to meet this citys specifications; indeed, it competes with many manufacturers. As each firm produces a homogenous product, each firm has no ability to impact price. The weekly cost of producing computers is TC= C(Q)=2+(1/2)*Q2 and the demand for your product is given by Q(P)=5-0.5*P. Other firms in the industry sell at market price which is $1.00. a) What price and quantity should you produce to maximize your firms profits? b) What profits do you expect to earn ? (Please use graphs to support your answer.)

(Please do not use excel to answer)