Suppose that airlines compete for customers on flights between Chicago and Los Angeles. The total number of passengers flown by the firms, Q, is the sum of the number of passengers flown by each firm. We assume all firms are identical and face the same costs. Our estimate of the market demand function is Qequals431minusp, where price, p, is the dollar cost of a one-way flight, and total quantity of the airlines combined, Q, is measured in thousands of passengers flying one way per quarter. Each airline has a constant marginal cost, MC, of $138 per passenger per flight. What fixed cost would result in four firms operating in the monopolistically competitive equilibrium? What are the equilibrium quantities and prices? The Cournot equilibrium quantity for each of the four firms is

If they answer a question for you do you have the option to make them

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