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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?
What is the minimum amount you would have to offer Fiberboard for it to accept your purchase offer?
In many developing countries, government regulations and red tape impose high costs on those who officially register capital ownership. The dead capital problem that these government inefficiencies create reduces investment and growth.
The Cole family owns a house with an alarm system that they activate whenever they leave the house. Recently, the Cole family purchased homeowner's insurance that fully covers all losses. After purchasing the insurance, family members haven't been us..
What does it take to ensure that Starbucks' customers are satisfied? (Why) Is satisfaction an important metric for Starbucks to manage? Maximum of 50-75 words
As per to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. Elucidate is a company violating the optimality rule.
Assume the market for a commodity is described by the demand and supply functions. Determine the equilibrium price and quantity in this market. Draw a graph to illustrate your answer and compute the consumer surplus and the producer surplus.
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
You have decided that in order to have a comfortable retirement you will need to replace $65,000in income each year in retirement. Assuming you will need 20 years of retirement income and an inflation rate of 3.5%, how much will you need to have save..
A firm has the production function y = x1 + min{x1, x2}. Draw three isoquants for this firm. Does this firm have constant returns to scale?
Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statements is true? The distribution of income is more equal in the United States. The distribution of income is more equal in t..
If you could, how would you alter the way that GDP is defined and measured in the US? Make one recommendation. Explain what the current practice is, how you would change it, and why your proposed change would be an improvement.
Would Boeing's margin likely rise or fall if the yen then depreciated and competitor prices were unchanged? Why?
q1. explain how do you calculate the cost index using the nominal gdp to get the real gdp in billionsq2. the ncaa
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