2. A firm has a demand and cost function given by: D: P=100-Q,C: P=10+2q1+4q2
a) Demonstrate whether this firm has economies to scale.
b) Demonstrate whether this firm has economies of scope.
c) Assume that the firm is the only firm in the market, derivegraphically and numerically the optimal quantity, price and theprofits/losses.
d) What is the Lerner Index? Provide a numerical value andexplain the relevance of the index/how it is used
