I am given the following information for a firm that sells video MP3 players.

Q                P    TC

0                 $78        $100,000

1000           $76        $125,500

2000           $74         $144,000

3000           $72         $158,500

4000            $70        $172,000

5000           $68         $187,500

6000           $66         $208,000

7000            $64         $236,500

8000            $62         $276,000

9000           $60         $329,500

10,000         $58         $400,000

1) The question asks to determine the equations for P=f (Q), MR=f(Q), ATC=f (Q, Q^2), AVC=f(Q, Q^2), MC=f (Q, Q^2) I believe I need to run a regression analysis to get the TC equation first, but am not sure. Can you help with this?

2) It then asks to calculate the Lerner Index and describe the competitiveness of the market. I know that the Lerner Index is P-MC/P. How can I tell the competitiveness of the market with the Lerner Index?