18. 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.