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 - Q/2).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

Quizplus · Accepted Answer

The Answer of 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 - Q/2).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.

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