Suppose that two airlines are Cournot duopolists serving the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 220 -2p.
Suppose that two airlines are Cournot duopolists serving the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 220 -2p. Total costs of running a flighton 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.$3,000.b.$800.c.$220.d.$700.e.$400.
i got 60 as the q for both airlines which probably be wrong, wonder what role does that number 80 plays, and plz show me the step.. thx