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. $512.
B. $384.
C. $256.
D. $128.
Answer: C
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Answer the following statement true (T) or false (F)
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A) also difficult to collect, aggravate B) also difficult to collect, hold down C) a realistic alternative, aggravate D) a realistic alternative, hold down
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Indicate whether the statement is true or false
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