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

question 11

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 = 190 - 2p (so p = 95 - ) . 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) $2,250.

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Definitions:

Papillae

Small, nipple-like projections on the tongue where taste buds are located, involved in the sense of taste.

Taste Buds

Sensory organs on the tongue that are responsible for detecting and interpreting flavors in food.

Primary Taste Sensations

The basic categories into which all our taste perceptions can be classified, typically sweet, sour, salty, bitter, and umami.

Light Adaptation

The process by which the eye adjusts its sensitivity to the brightness of the environment, enabling it to see in conditions ranging from bright sunlight to dim light.