Question: Derive United Airline's best - response function if its marginal cost falls to $ 5 1 per unit. Part 2 Initially , United's marginal revenue
Derive United Airline's bestresponse function if its marginal cost
falls
to
$
per unit.
Part
Initially United's marginal revenuederived from its residual demand curve is
MR Superscript Upper UMRUequalsminusq Subscript Upper UqUminusq Subscript Upper AqA
and American's marginal revenuederived from its residual demand curve is
MR Superscript Upper AMRAequalsminusq Subscript Upper AqAminusq Subscript Upper UqU.
Part
Determine United's marginal revenue function corresponding to its
residual demand curve
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Part
Uniteds marginal revenue function with marginal costs of
$
per unit is
MR Superscript Upper UMRUequals minus q Subscript Upper U Baseline minus q Subscript Upper AqUqA
Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg a subscript can be created with the character.
Part
Equate United's marginal revenue function and its marginal cost to determine its
bestresponse function
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Part
Uniteds bestresponse function with marginal costs of
$
per unit is
q Subscript Upper UqUequalsenter your response here.
Properly format your expression using the tools in the palette.
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