Question;10. (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.
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