For the remaining scenarios suppose a competitor Fastair enters the market. Fastair faces the same costs as Bigjet. The two airlines simultaneously choose the size and configurations of their aircrafts (except in Scenario 7). To do so, they must predict the likely prices that they will receive for their tickets which depends on the number of seats that the competitor puts up for sale. This is because in this market actual prices adjust to ensure that all seats on both aircrafts are sold, i.e., prices adjust to clear the market for all the seats that the airlines put up for sale. Fastair is operated by two LBS Professors. Their objective is to maximise Fastair's profit, and they expect their competitor to think much like themselves. We will assume that Fastair (just like you) has access to complete valuation data