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