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-meximizing output level in the market. The inverse demand function for baxes is P-1200-6Q CompositeBox's costs are Caad 6000 and Fiberboard's costs are CAQA=1200F Ignoring antitrust considerations, by how much would your profits increase if you merged with Fiberboerd? What is the minimum amount you would have to offer Fiberboard for it to accept your purchase offer?

The Great Recession of 2007-2009 hit young people particularly hard, with long-lasting effects. The U.S. unemployment rate for 20- to 24-year-olds went from 8.5% in 2007 to 16% in 2009, stayed above 13% through 2012, but fell to 7% by the first half of 2018. As a result, more adult children moved back to live with their parents or asked for financial help than in previous years. The share of 25- to 34-year-olds living in multigenerational households rose from 11% in 1980 to 15% in 2016. A recent survey finds that 41% of parents provide financial support to their 23- to 28-year-old offspring. Indeed, parents give 10% of their income on average to their adult children. Mimi wants to support her son Jeff if he looks for work but not otherwise. Jeff (unlike most young people) wants to try to find a job only if his mother will not support his life of indolence. Mimi and Jeff's payoff matrix is illustrated in the figure to the right. If Jeff and Mimi choose actions simultaneously, what are…

a) For each, find the expressions for marginal utilities and the marginal rate of substitution, and determine whether monotonicity and convexity are met.

clai)= A.Q, claz) = Bq A CA, B,a,P) ail positive Q = Dp> all positive