How would the Cournot equilibrium change in the airline example if American's marginal cost were $70...

 

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How would the Cournot equilibrium change in the airline example if American's marginal cost were $70 and United's were $140? The demand the duopoly quantity-setting firms face is with an inverse demand function of where qA is the quantity produced by American and qu is the quantity produced by United. The Cournot-Nash equilibrium occurs where qA equals Furthermore, the equilibrium occurs at a price of $ Q=339-p p=339-19A-1qu. MacBook Pro and qu equals (enter numeric responses using integers) (round your answer to the nearest penny) Time Remaining: 01:19:24 How would the Cournot equilibrium change in the airline example if American's marginal cost were $70 and United's were $140? The demand the duopoly quantity-setting firms face is with an inverse demand function of where qA is the quantity produced by American and qu is the quantity produced by United. The Cournot-Nash equilibrium occurs where qA equals Furthermore, the equilibrium occurs at a price of $ Q=339-p p=339-19A-1qu. MacBook Pro and qu equals (enter numeric responses using integers) (round your answer to the nearest penny) Time Remaining: 01:19:24

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Answer To calculate the CournotNash equilibrium we need to first derive the best response function o... View the full answer