Suppose that two cournot duopolists serve the


Suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q=200-2p (so p=100-Q/2). Total costs of running a flight on this route are 700+40q 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, what will its daily profit be?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose that two cournot duopolists serve the
Reference No:- TGS01111788

Expected delivery within 24 Hours