How would the Cournot equilibrium change in the airline example if American\'s m

Question

How would the Cournot equilibrium change in the airline example if American's marginal cost were $100 and United's were $50? The demand the duopoly quantity-setting firms face is Q =339 - p with an inverse demand function of p=339-1qA-1qU, where qA is the quantity produced by American and qU is the quantity produced by United. The Cournot-Nash equilibrium occurs where qA, equals and qU equals . (enter numeric responses using integers) Furthermore, the equilibrium occurs at a price of $ . (round your answer to the nearest penny)

Explanation / Answer

Q = 339-p

339-p= qA +qU

Revenue = p*qA

Revenue = (339-qA-qU)*qA

Marginal Revnue = (339-qA-qU) + qA(-1) = 339-2qA-qU

MR = MC

339-2qA-qU= 100

239 -2qA= qU                           

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