Two identical firms compete as a Cournot duopoly.The demand they face is P = 100 − 2Q.The cost function for each firm is C(Q)= 4Q.In equilibrium,the deadweight loss is:
A) $128.
B) $256.
C) $384.
D) $512.

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The Answer of Two identical firms compete as a Cournot duopoly.The demand they face is P = 100 − 2Q.The cost function for each firm is C(Q)= 4Q.In equilibrium,the deadweight loss is:
A) $128.
B) $256.
C) $384.
D) $512.

Two Identical Firms Compete as a Cournot Duopoly