Now suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two firms that behave in a Cournot Model fashion. The market demand schedule is cost schedule for both firms are: P = 400 - .5*Q, and firm level cost for both firms is MC=AC=Scomp=100. What is the Cournot Market Price? Fill in the blank below with your answer. Your answer should be entered as a whole number such as 102. If you get 102.56, do not round or enter any decimal places, just enter 102 and nothing else for the answer.
Now suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two firms that behave in a Cournot Model fashion. The market demand schedule is cost schedule for both firms are: P = 400 - .5*Q, and firm level cost for both firms is MC=AC=Scomp=100. What is the Cournot Market Price? Fill in the blank below with your answer. Your answer should be entered as a whole number such as 102. If you get 102.56, do not round or enter any decimal places, just enter 102 and nothing else for the answer.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQP
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning