South Charlerio Airport is a regional airport serving the leisure travel market. The inverse demand curve for this airport is P= 150 – Q. Assume there are onlt tow airlines serving this airport, each with the identical marginal cost (MC) of $30.
A) supposing they perform as Cournot oligopolists, determine the price and total firm productivity.
B) Compare this with the result under pure monopoly and perfect competition .
