In Problem 6, Suppose That Two Cournot Duopolists Serve the Peoria-Dubuque

question 18

Multiple Choice

In Problem 6, suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 170 - 2p (so p = 85 - ) . Total costs of running a flight on this route are 850 + 10q, 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) $400.
• B) $425.
• C) $170.
• D) $800.
• E) $1,750.

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Definitions:

Evolutionary Adaptation

The process through which species undergo changes over time due to genetic variation and natural selection, helping organisms to survive and reproduce in their environments.

Stimulus Discrimination

The learned ability to distinguish between similar stimuli and respond differently based on their associative properties with reinforcement or punishment.

Secondary Reinforcer

Indicates any stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavioral conditioning.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.