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suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 190 - 2p (so p = 95 - Q/2). Total costs of running a flight on this route are 1,050 + 20q, where q is the number of passengers on the flight. Each flight has a capacity of 80 passengers. In Cournot equilibrium, each duopolist will run one flight per day and will make a daily profit of: a)$525 b)$190 c)$200 d)$400 e)$2250

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M962193

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