(Solution) - The market for a standard sized cardboard container consists of -(2025 Original AI-Free Solution)

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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 = 800 ? 4Q, CompositeBox?s costs are CC(QC) = 40QC, and Fiberboard?s costs are CF (QF) = 80QF. Ignoring antitrust considerations, would it be profitable for your firm to merge with Fiberboard? If not, explain why not; if so, put together an offer that would permit you to profitably complete the merger.