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

question 24

Multiple Choice

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 - Q/2) .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.