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?

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.