Suppose That Two Cournot Duopolists Serve the Peoria-Dubuque Route, and the Demand

question 3

Multiple Choice

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 - Q/2) .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.

Understand how barriers to entry affect market structure and competition.

Describe how firms in different market structures make decisions regarding output, price, and competition.

Analyze demand curves in various theoretical market situations and understand the relevance to market power.

Recognize the role of government regulation in imperfectly competitive markets.

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Definitions:

Critical Period

In this context, a period during which an embryo is particularly vulnerable to a certain teratogen.

Releasing Stimulus

is a specific external cue or signal that triggers a fixed action pattern or instinctive behavior in an animal.

Social Deprivation

A lack of necessary social contact, interaction, and access to community resources, often leading to negative psychological and physical health outcomes.

Developmental Outcomes

The measurable results of growth or progress in physical, cognitive, social, and emotional domains of development.