Reference no: EM13186570
American Airlines and United Airlines compete for customers on flights between
Chicago and Los Angeles. The total number of passengers flown by these two firms (per quarter), q, is the sum of the passengers flown on American, qA, and those flown on United, qU. Assume no other companies can enter. The flight Chicago-Los Angeles costs each airline $147 per passenger. Let p be the price per passenger in dollars. Suppose that the demand function is q(p) = 339-p
1) If American were a monopoly, what would its optimal quantity and price be? What would its profit be?
2) In the duopoly described above, what is the Cournot equilibrium price for this industry? What is each airline's profits?
3) If American were to move first, and United second, what would be the stackelberg equilibrium quantities? Price? Profits?
4) Consider a situation where American and United would form an alliance, called AUA, which behaves as a monopolist on this market. What would AUA's optimal quantity be? What would be the resulting price? What would its profit be? Assuming each airline gets half of AUA's profits, what would each airline's profit be? Are those profits greater than their profits in the duopoly (both cournot and stackelberg)?
|
State the thermostat in a refrigeraor filled with cans
: The thermostat in a refrigeraor filled with cans of soft drinks malfunctions and the temperature drops to below 0 degree Celsius. The contents of the cans of diet sodas freeze, rupturing many of the cans.
|
|
What is their monthly payment
: In order to purchase a home, a family borrows $267,000 at 10.8% for 15 yr. What is their monthly payment? Round the answer to the nearest cent.
|
|
Make a position-vs.-time graph of that trip
: Make a position-vs.-time graph of that trip.
|
|
Explain the heat of vaporization
: the specific heat of H2O(s) is 2.09 J/g ?C, of H2O (l) is 4.184 J/g ?C, and of H2O (g) is 1.84 J/g ? C. The heat of fusion of water is 334.7 J/g and the heat of vaporization is 2259.4 J/g.
|
|
What would be the stackelberg equilibrium quantities
: Chicago and Los Angeles. The total number of passengers flown by these two firms (per quarter), q, is the sum of the passengers flown on American, qA, and those flown on United, qU. Assume no other companies can enter. The flight Chicago-Los Angel..
|
|
Explain solution of an unknown monoprotic acid
: solution of an unknown monoprotic acid with 23.68 mL of .9721 M NaOH results in a solution pH of 3.74 Calculate the Ka of the acid.
|
|
How to use price regulation of pharmaceutical compony
: In developing a vaccine for a dangerous new strain of flu virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it equal to zero). The pharmaceutical..
|
|
State the atmospheric distillation is done first
: if you are performing both an atmospheric distillation and a vacuum distillation in the same experiment: a. The atmospheric distillation is done first.
|
|
Explore ways to secure a wireless network
: Explore ways to secure a wireless network and present your findings in a brief report(1 page is fine, more is ok). Talk about your own experiences with using a wireless network, including the things you do to keep the network secure.
|