Market for standard-sized cardboard container consists

Assignment Help Business Economics

Reference no: EM131096200

The market for a standard-sized cardboard container consists of two firms: Composite Box 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 = 1200 – 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? $

What is the minimum amount you would have to offer Fiberboard for it to accept your purchase offer? $

Reference no: EM131096200

Questions Cloud

Implement a simplified version of ssl : COMP 4337/9337 - Securing Wireless Networks - Implementation Assignment - Implement a simplified version of SSL/TLS (miniSSL) and a sim-plified application-layer protocol (miniGet) in this project.

Concerned about drop in export demand : U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the U.S.? Do farmers have much reason to worry?

Sales volume as a concomitant variable : Refer to Cash offers Problem 19.10. An analyst wishes to use each dealer's sales volume as a concomitant variable. The sales data (Xij) in hundred thousand dollars) follow.

Number of pretzel-stand licences : a) Illustrate the current equilibrium in a two-part diagram with the entire market in one part and an individual pretzel stand in the other. b) Now the city decides to restrict the number of pretzel-stand licences, reducing the number of stands to..

Market for standard-sized cardboard container consists : The market for a standard-sized cardboard container consists of two firms: Composite Box 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 Fiberb..

Formula for family of indifference curves : What is the formula for his family of indifference curves? What do these curves look like? In this example, are movies and books perfect substitutes, perfect complements, or neither?

Estimate the mean sales with display treatment : f. Make all pairwise comparisons between the treatment effects: use either the Bonferroni or the Scheffe procedure with a 90 percent family confidence coefficient. whichever is more efficient. State your findings.

Calculate his total opportunity cost of opening the company : Charles decided to open a lawn-mowing firm. To do so, he buys a mowing machine for $7,000 and gasoline ($2.2 in gas is needed to mow each yard) and pays a helper $25 per yard. Prior to opening the company, he earned annually $3,000 as a life guard at..

Assume the cat food industry is perfectly competitve : Assume the cat food industry is perfectly competitve and is in long run equilibrium. suppose people start to take more cats than dogs as pets, what is the impact to the cat food industry and the individual firm in the short run and long run specifica..

User Account

All Pages