How would the Cournot equilibrium change in the airline example if American's marginal cost were $90 and United's were $180? The demand the duopoly quantity-setting firms face is Q=339−p with an inverse demand function of p=339−1qA −1qU where qA is the quantity produced by American and qU is the quantity produced by United. The Cournot-Nash equilibrium occurs where qA equals ? enter your response here
How would the Cournot equilibrium change in the airline example if American's marginal cost were $90 and United's were $180? The demand the duopoly quantity-setting firms face is Q=339−p with an inverse demand function of p=339−1qA −1qU where qA is the quantity produced by American and qU is the quantity produced by United. The Cournot-Nash equilibrium occurs where qA equals ? enter your response here
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.1P
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How would the Cournot equilibrium change in the airline example if American's marginal cost were $90
and United's were $180?
The demand the duopoly quantity-setting firms face is Q=339−p
with an inverse demand function of p=339−1qA −1qU
where qA is the quantity produced by American and qU is the quantity produced by United.
The Cournot-Nash equilibrium occurs where qA equals ? enter your response here
and qU equals? enter your response here. (enter numeric responses using integers)
Furthermore, the equilibrium occurs at a
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