Which of the Following Is True of the Cournot Duopoly

Multiple Choice

Which of the following is true of the Cournot duopoly model?

A) It shows how the interaction of uncoordinated output decisions of rival firms leads to equilibrium in the oligopoly market.
B) It explains how prices are determined in a market that has a large number of firms and a homogeneous product.
C) It shows how equilibrium is attained in a market where two firms collude to set output and price equal to the monopoly output and price.
D) It explains how prices are determined in a market with a single dominant firm and a large number of competitive fringe firms.