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Business, 30.10.2019 04:31 harvzoie

Consider 2 airplane manufacturers that compete as cournot duopolists in the market for commercial aircraft. arrowing (firm a) has a cost function given by =whereas skytrain (firm s) has a cost function given by ) =. the market demand function for commercial airliners is given by: = βˆ’ where is the sum of the quantity of planes available for purchase. a) if the two companies choose the quantities of trips supplied simultaneously, find the cournot equilibrium quantities supplied for each firm and the equilibrium price. b) suppose that firm a has the opportunity to choose their quantity of trips first, so that they are a stackelberg leader. find the ne to this game.

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