Question
The given equation is:

MRA = 339 - 2qU - qA

How does the Nash-Cournot equilibrium change in the airline example if United Airlines marginal cost is $100 and Americans

these were part of the sample and the HINT 11.1
residual demand evenue function Answer • Determine Uniteds marginal revenue function corresponding to its residual da curve.
3. Find the new Nash-Cournot equilibrium pa response functions for 9A and qu. Because is unchanged, its best-response functie
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Answer #1

America : MR = 339 - 29A-qu MC : 200 Equilibrium: MR = MC . 339 - 2aA qu=200 or, 139 - 29A -qu-0 ...19 United : MR 339 - MC:

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