Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 13 Now suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two rms that behave in a

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
QUESTION 13 Now suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two rms that behave in a Cournot Model fashion. The market demand schedule is cost schedule for both firms are: P = 400 - .5*Q, and rm level cost for both rms 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. QUESTION 14 Now consider Atlanta as an oligopoly market with five airlines that behave in a Cournot Model fashion. The Atlanta market demand schedule is: P = 400 - .5*Q. The Cost schedule for Delta is: MC=AC=Scomp=100. The Cost schedule for the other four firms (United, Southwest, et al) 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.QUESTION 15 Again consider Atlanta as an oligopoly market with ve airlines that behave in a Cournot Model fashion. The Atlanta market demand schedule is: P = 400 - .5*Q. The Cost schedule for Delta is: MC=AC=Scomp=100. The Cost schedule for the other four rms (United, Southwest, et al) is: MC=AC=Scomp=60. In the previous scenario Delta's market share was 20% since all five rms were identical. What is Delta's new market share? Fill in the blank below with your answer. Your answer should be entered as a whole number such as 20 if the answer is 20.87%. That is, if you get a number such as 20.8?% do not round or enter any decimal places, just enter 20 and nothing else for the

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Ethics Case Studies And Selected Readings

Authors: Marianne M. Jennings

9th Edition

0357453867, 9780357453865

Students also viewed these Economics questions

Question

Describe Titcheners theory of meaning.

Answered: 1 week ago