(30 Points) Suppose the demand function faced by an oligopolist is Q = 100 ? 10P or P = 10 ? 0.1Q;10.1. 1. Derive the Total Revenue (TR) Function.;10.2. If the Cost function is TC = 70 + 2Q, derive the price and quantity which maximizes profits.;10.3. Derive the Price and quantity which maximizes TR or Sales.;11. (10 Points) Under what circumstances is the Justice Department likely to challenge a merger using the HHI?;Quantitative (40 Points);12. Given the following three factor production function:, where Q is output, K, capital, L, labour, and M, materials. Find the following, use the product rule for differentiation;12.1. aQ/aK;12.2. aQ/aM;12.3. Discuss the elasticity of each factor input.;12.4. Discuss the returns to scale.
Paper#15144 | Written in 18-Jul-2015Price : $37