Business, 27.09.2019 03:00, amandasantiago2001
The market for a standard-sized cardboard container consists of two firms: compositebox and fiberboard. as the manager of compositebox, you enjoy a patented technology that permits your company to produce boxes faster and at a lower cost than fiberboard. you use this advantage to be the first to choose its profit-maximizing output level in the market. the inverse demand function for boxes is p = 1,200 – 6q, compositebox’s costs are cc(qc) = 60qc, and fiberboard’s costs are cf(qf) = 120qf. ignoring antitrust considerations, by how much would your profits increase if you merged with fiberboard?
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