Q P TC

0 $39.80 $400.00

10 $37.30 $546.00

20 $34.80 $692.00

30 $32.30 $850.00

40 $29.80 $1032.00

50 $27.30 $1250.00

60 $24.80 $1516.00

70 $22.30 $1842.00

80 $19.80 $2240.00

90 $17.30 $2722.00

100 $14.80 $3300.00

a.Determine equations for P=f(Q), MR=f(Q), ATC=f(Q, Q²), AVC=f(Q, Q²), MC=f(Q, Q²). Recall that your marginal equations should be derivatives of your totals!

b.Determine the profit-maximizing price and quantity. (Since MC is in terms of Q², solving with calculus and algebra can be messy. Your table should give an exact answer.)

c.How much total profit would your firm earn if you set P and Q according to part b?

d.Describe the competitiveness of the market by calculating the Lerner index.