discrimination schemes and discuss both sorting and arbitrage a.Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare b.Insisting on delivering cement to buyers and basing prices on buyers'locations. c.Selling food processors along with coupons that can be sent to the manufacture to obtain aS10 rebate d.Offering temporary price cuts on bathroom tissue e.Charging high-income patients more than low-income patients for plasti surgery. 得分阅卷教师 三、Calculation:(每题20分，共40分) 1.Suppose the airline industry consisted ofonly two firms:American and Texas Air Corp.Let the two firms have identical cost functions,C(q)=40q.Assume the demand curve for the industry is given by P=100-Q and that each firm expeets the other to behave as a Cournot competitor a.Calculate the Cournot-Nash equilibrium for each firm,assuming that each chooses the output level that maximizes its profits when taking its rival's output as given.What are the profits ofeach firm? b.What would be the equilibrium quantity if Texas Air had constant marginal and average costs of $25,and American had constant marginal and average costs of$40? e.Assuming that both firms have the original cost function,C(q=40q,how much should Texas Air be willing to invest to lower its marginal cost from $40 to $25,assuming that American will not follow suit?How much should American discrimination schemes and discuss both sorting and arbitrage: a. Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare. b. Insisting on delivering cement to buyers and basing prices on buyers’ locations. c. Selling food processors along with coupons that can be sent to the manufacturer to obtain a $10 rebate. d. Offering temporary price cuts on bathroom tissue. e. Charging high-income patients more than low-income patients for plastic surgery. 三、Calculation：（每题 20 分，共 40 分） 1. Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Assume the demand curve for the industry is given by P = 100 - Q and that each firm expects the other to behave as a Cournot competitor. a. Calculate the Cournot-Nash equilibrium for each firm, assuming that each chooses the output level that maximizes its profits when taking its rival’s output as given. What are the profits of each firm? b. What would be the equilibrium quantity if Texas Air had constant marginal and average costs of $25, and American had constant marginal and average costs of $40? c. Assuming that both firms have the original cost function, C(q) = 40q, how much should Texas Air be willing to invest to lower its marginal cost from $40 to $25, assuming that American will not follow suit? How much should American 得分 阅卷教师