Question
South Charleroi Airport is a regional airport serving the leisure travel market. The inverse demand curve is P=150-Q. Assume there are two airlines serving this
South Charleroi Airport is a regional airport serving the leisure travel market. The inverse demand curve is P=150-Q. Assume there are two airlines serving this airport, each with an identical marginal cost of $30.
A. suppose they perform as Cournot oligopolists, determine the price and total firm productivity( P and Q)
B. Compare this with the result under pure monopoly and perfect competition.
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
