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

question 30

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 = 160 - 2p (so p = 80 - ) . Total costs of running a flight on this route are 400 + 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) $800.
• B) $400.
• C) $200.
• D) $160.
• E) $1,600.

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Definitions:

Conservation

The understanding that certain properties of objects, like volume or mass, remain the same despite changes in the objects' form or appearance.

Length

A measurement of how long something is from end to end, typically measured in units such as meters, feet, or inches.

Conservation

In cognitive development, the understanding that certain properties of objects remain the same despite changes in the object's appearance.

Number

A mathematical object used to count, measure, and label.