Suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two firms that behave in a Cournot Model fashion. The market demand schedule and firm-level cost schedule for both firms are: P = 390 - .5*Q, MC=AC=Scomp=80. Again, suppose both Delta and United serve the Atlanta market. What is the Cournot Market Price?

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P39005 Q Revenue Q39005Q R390Q ... View the full answer