( Marginal Profitability to the Box Mill) (Units of Paper equivalent to ($) One Box) ($) ($) ($) ($) ($) $60 $60 $6.50 $54 N $108 $6.50 S $48 W $144 $6.50 S $42 $168 $6.50 $36 UT $180 $6.50 $30 $180 $6.50 $24 $168 $6.50 $18 $144 $6.50 S $12 $108 S $6.50 $6 10 $60 $6.50 S If the paper mill sets the price of paper to sell to the box mill, it will set a price of * and sell . units of paper to the box mill. Profits will be $ for the paper mill. Companywide profits will be $ (Hint: Recall that the prices in the table represent the marginal profitability of each unit of paper, or box, to the box mill.) Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($6.50). In this case, the box mill will demand _ units of paper. This leads to companywide profits of $ Grade It Now Save & Continue