In Problem 6, suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 240 - 2p (so p = 120 - ). Total costs of running a flight on this route are 900 + 30q, 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) $240.
B) $900.
C) $1,800.
D) $450.
E) $3,600.

Question

In Problem 6, suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 240 - 2p (so p = 120 -  ). Total costs of running a flight on this route are 900 + 30q, 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) $240. 
B) $900. 
C) $1,800. 
D) $450. 
E) $3,600.

Quizplus · Accepted Answer

The Answer of In Problem 6, suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 240 - 2p (so p = 120 -  ). Total costs of running a flight on this route are 900 + 30q, 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) $240. 
B) $900. 
C) $1,800. 
D) $450. 
E) $3,600.

In Problem 6, Suppose That Two Cournot Duopolists Serve the Peoria-Dubuque