Suppose that two airlines, HappyJet and CrazyJet, with identical cost functions are serving a regional airport with the following information:

Market Demand: P = 1750 - 25Q

Cost Functions: AC = MC = $50

1. Calculate the equilibrium output and price for each airline, assuming that each airline chooses the output level that maximizes profits. _____________; _____________.

2. Calculate the profit level for each airline at equilibrium level. _____________

3. Suppose that HappyJet's costs increase to AC = MC = 100 and CrazyJet costs remain the same. Determine the equilibrium quantity and price for each airline. ____________; _______________; _____________.