Which of the Following Is True of the Cournot Model

Multiple Choice

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

A) The products sold by the firm are imperfect substitutes.
B) The equilibrium price in a Cournot duopoly is higher than the price in a monopoly.
C) The demand curve facing each firm is horizontal.
D) The market price is determined by the output produced by the firm with the larger market share.
E) The duopoly equilibrium lies between the pure-monopoly and purely competitive outcomes.