American Airlines (A) and Hawaiian Airlines (H) are two large airlines in the US market. The market has Market Demand:P = 506 - QMwhere QM denotes the number of passengers of the total market per day. American Airlines operates with a Fixed Cost of $3400 per day no matterwhether the plane flies or not and at a Marginal Cost of $9 per passenger. While Hawaiian Airlines operates with a lower Fixed Cost of $2400 per day nomatter whether the plane flies or not and at a higher Marginal Cost of $17 per passenger.Suppose now American Airlines and Hawaiian Airlines are competing in Price, i.e. they are in Bertrand Competition. Suppose both airlines can only setthe price as an integer. If the airline loses the market, it supplied 0 quantity.Answer the following questions from the drop-down list:1. American Airlines' Equilibrium Price = $2. Hawaiian Airlines' Equilibrium Price = $3. American Airlines' Equilibrium Quantity =4. Hawaiian Airlines' Equilibrium Quantity =5. Profit of American Airlines = $6. Profit of Hawaiian Airlines = $✓ *10

merican Airlines (A) and Hawaiian Airlines (H) are two large airlines in the US market. The market has Market Demand: P = 506 - QM here QM denotes the number of passengers of the total market per day. American Airlines operates with a Fixed Cost of $3400 per day no matter hether the plane flies or not and at a Marginal Cost of $9 per passenger. While Hawaiian Airlines operates with a lower Fixed Cost of $2400 per day no hatter whether the plane flies or not and at a higher Marginal Cost of $17 per passenger. uppose now American Airlines and Hawaiian Airlines are competing in Price, i.e. they are in Bertrand Competition. Suppose both airlines can only set he price as an integer. If the airline loses the market, it supplied 0 quantity. nswer the following questions from the drop-down list: 1. American Airlines' Equilibrium Price = $ 2. Hawaiian Airlines' Equilibrium Price = $ 3. American Airlines' Equilibrium Quantity = 4. Hawaiian Airlines' Equilibrium Quantity = 5. Profit of American Airlines = $ 6. Profit of Hawaiian Airlines = $ v ✓ *10

merican Airlines (A) and Hawaiian Airlines (H) are two large airlines in the US market. The market has Market Demand: P = 506 - QM here QM denotes the number of passengers of the total market per day. American Airlines operates with a Fixed Cost of $3400 per day no matter hether the plane flies or not and at a Marginal Cost of $9 per passenger. While Hawaiian Airlines operates with a lower Fixed Cost of $2400 per day no hatter whether the plane flies or not and at a higher Marginal Cost of $17 per passenger. uppose now American Airlines and Hawaiian Airlines are competing in Price, i.e. they are in Bertrand Competition. Suppose both airlines can only set he price as an integer. If the airline loses the market, it supplied 0 quantity. nswer the following questions from the drop-down list: 1. American Airlines' Equilibrium Price = $ 2. Hawaiian Airlines' Equilibrium Price = $ 3. American Airlines' Equilibrium Quantity = 4. Hawaiian Airlines' Equilibrium Quantity = 5. Profit of American Airlines = $ 6. Profit of Hawaiian Airlines = $ v ✓ *10

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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