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Transcribed Image Text:Show how the deadweight loss varies in the airline market as the number of firms increases from one to three. Assume that
direct market demand is Q(P) = 339 – P and that each firm has a constant marginal cost of $147 with negligible fixed costs.
Further, recall that the price with one firm is $243 (and market output is 96) and that the price with three firms is $195 (and market output
is 144).
As the number of firms in this market increases from one to three, deadweight loss decreases by $3456.00. (Enter your answer rounded to
two decimal places).
direct market demand is Q(P) = 339 – P and that each firm has a constant marginal cost of $147 with negligible fixed costs.
Further, recall that the price with one firm is $243 (and market output is 96) and that the price with three firms is $195 (and market output
is 144).
As the number of firms in this market increases from one to three, deadweight loss decreases by $3456.00. (Enter your answer rounded to
two decimal places).
