Profits increase if merged company

Assignment Help Business Economics

Reference no: EM13912724

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 = 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?

Reference no: EM13912724

Questions Cloud

Tractive force in newtons : A lorry, of mass 38000 kg, starts up a hill of gradient 1 in 12. The constant acceleration is 0.06 m/s2 and resistance to motion is 1200 N (not gravitational force). What is the tractive force in Newtons exerted by the lorry's driving wheels?

Redbud company uses a certain part in its manufacturing : Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus another $6 for shipping and other purchasing related costs.

Concept of opportunity cost : Explain the concept of opportunity cost as related to the doctor in the Khan Academy video who gave up his profession to open a business.What other factors do you think the doctor may have considered when he decided to leave his profession to open a ..

The product mix decision : The product mix decision. ABC Company produces product X, product Y, and product Z. All three products require processing on specialized finishing machines.

Profits increase if merged company : 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 Fiberbo..

Review problem time value of money applications : Review problem time value of money applications. Use the appropriate factors from Table 6 4 or Table 6 5 to answer the following questions.

Process improve blackspot''s profits : You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. How much will this process improve BlackSpot's profits.

Find position and velocity : A school bus heading east through a small town accelerates as it passes the sign post at s = 0. Marking the city limits. Its acceleration is constant 5 m/s^2 at time 0; it is 5 m east of the (+) sign post and has a velocity of 3 m/s.

Pc connection and cdw : PC Connection and CDW are two online retailers that compete in an Internet market for digital cameras. While the products they sell are similar, the firms attempt to differentiate themselves through their service policies.Over what range will changes..

User Account

All Pages