In a Market Where Two Firms Compete by Setting Quantity,the

Multiple Choice

In a market where two firms compete by setting quantity,the Cournot equilibrium has which of the following characteristics?

A) The two firms' reaction functions intersect.
B) There is no incentive for the two firms to collude.
C) The two firms' isoprofit curves intersect one another at the highest point.
D) The two firms' reaction functions intersect at the highest point where the two firms' isoprofit curves intersect one another.