Adkins Air is the only seller offering service directly from Milwaukee to Greensboro. The market is contestable. Thus the Nash Equilibrium for a game between Adkins Air and a potential entrant is when the potential entrant

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In a contestable market, potential entrants will enter if there is an opportunity to earn an economic profit. However, since Adkins Air is the only seller offering service directly from Milwaukee to Greensboro, there is no opportunity for a potential entrant to earn an economic profit. Therefore, the Nash Equilibrium is for the potential entrant not to enter and for Adkins Air to earn a normal profit.

Adkins Air Is the Only Seller Offering Service Directly from Milwaukee