suppose that two airlines are Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 220 – 2p (so p = 110…

suppose that two airlines are Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 220 – 2p (so p = 110 – Q/2 ). Total costs of running a flight on this route are 1,400 + 20q, 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)$400 b)$800 c)$220 d)$700 e)$3000