suppose that two Cournot duopolists serve the Peoria-Dubuque route, and the demand curve for tickets per day is Q = 170 - 2p (so p = 85 - Q/2) .Total costs of running a flight on this route are 850 + 10q, 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) $400.
B) $425.
C) $170.
D) $800.
E) $1,750.

Cournot Duopolists

Refers to firms in a duopoly (a market dominated by two companies) that determine their strategy based on the assumption that the other firm's output will be constant.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Total Costs

The sum of all expenses incurred by a company in producing goods or offering services, encompassing both fixed and variable costs.