Two Identical Firms Compete as a Cournot Duopoly

question 57

Multiple Choice

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.

---

Definitions:

Incentive Compensation

Incentive compensation is a form of payment designed to motivate and reward employees' performance, often tied to achieving specific goals or benchmarks.

Quarterly Performance

The assessment of an organization's, team's, or individual's work results and achievements over a three-month period.

Merit Pay

Awards pay increases in proportion to performance contributions.

Performance Appraisal System

A performance appraisal system is a structured process through which employees' job performance is regularly evaluated, providing feedback, identifying areas for improvement, and determining development needs.