In: Economics
Consider 2 firms facing the demand curve: P=90-5Q, where Q =Q1+Q2
The firms' cost functions are C1(Q1)=15+Q1 and C2(Q2)=15+30Q2
How much should Firm 1 be willing to pay Firm 2 if collusion is illegal but a takeover is not? Firm 1 should be willing to pay __.