question archive You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" ©)

Subject:EconomicsPrice: Bought3

You are given the following data for your firm, which sells a patented super-absorbent cleaning towel for use in large retail complexes (called "One Wring to Rule the Mall" ©).

Q

P

TC

0

$19.00

$200.00

10

$18.00

$295.00

20

$17.00

$372.00

30

$16.00

$437.00

40

$15.00

$496.00

50

$14.00

$555.00

60

$13.00

$620.00

70

$12.00

$697.00

80

$11.00

$792.00

90

$10.00

$911.00

100

$9.00

$1,060.00

a. Determine equations for P=f(Q), MR=f(Q), ATC=f(Q, Q^{2}), AVC=f(Q, Q^{2}), MC=f(Q, Q^{2}). 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 Q^{2}, 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.