Supose that delta and US Airways are separate and compete in the newy York, Los angeleles route. They have to decide how many discount seats to sell. The price is determined by the next formula P=200-0.10(qd+qu) where qd and qu are the discount seats in delta and US airways. The marginal cost of the route is $100 for delta and $50 for US airways. a. Find the quantities and profits for each company 1. Formulate the equations for maximization for each company Find the partiad derivative for each q and find qd and qu 2. 3. Substitute qd(quantity delta) y qu and find qu(quantity us airways) 4. Substitute qu y qd and find qd 5. Substitute qd and qu in the price function(p=200-0.10(qd+qu)) and find the price 6. Find the profit by substituting the values of p and q in the profit function

Supose that delta and US Airways are separate and compete in the newy York, Los angeleles route. They have to decide how many discount seats to sell. The price is determined by the next formula P=200-0.10(qd+qu) where qd and qu are the discount seats in delta and US airways. The marginal cost of the route is $100 for delta and $50 for US airways. a. Find the quantities and profits for each company 1. Formulate the equations for maximization for each company Find the partiad derivative for each q and find qd and qu 2. 3. Substitute qd(quantity delta) y qu and find qu(quantity us airways) 4. Substitute qu y qd and find qd 5. Substitute qd and qu in the price function(p=200-0.10(qd+qu)) and find the price 6. Find the profit by substituting the values of p and q in the profit function

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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