題組內容

3. Company R and company E are two airlines both fly between London and Malaysia. Their demand curves are given by QE = 500 - 2PE + PR and QR = 500 - 2PR + PE.
 QE and QR stand for the number of passengers per day for company E and company R, respectively. The marginal cost of each carrier is $10 per passenger.

a) (6分) If company R sets a price of $100, what is the equation of company R’s demand curve and marginal revenue curve? What is company R’s profit-maximizing price when company E sets a price of $100?