Q1. Over a reasonable range of quantities, firms producing goods A and B have the following cost function: C qA, 9B = 100 + 4qA + 89B - 29A9B, a. In the production of good A, are there economies of scale, diseconomies of scale, or constant returns to scale? b. Calculate the economies of scope (the way it is done in the book). Q2. There are ten firms in the widget industry who are very creative in naming their businesses: Rank Firm Revenue 1 Alice's widgets 100 2 Bob's widgets 90 3 Carol's widgets 80 4 Dan's widgets 70 5 Erin's widgets 60 6 Frank's widgets 50 7 Grace's widgets 40 Heidi's widgets 30 9 Ivan's widgets 20 10 Judy's widgets 10 a. Suppose widgets have many close competitor products whose firms are not included here. What will this do to our estimates of market concentration? b. Suppose instead that these firms (A through J) produce different kinds of widgets that aren't very similar. What will this do to our estimates of market concentration? c. Calculate CR(4) and CR(8) for this list of firms. d. Calculate the HHI for this list of firms