The Nash equilibrium applied to a model in which duopolistic firms compete with one another by choosing output levels is known as a(n)

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The Nash equilibrium applied to a model in which duopolistic firms compete with one another by choosing output levels is known as Cournot equilibrium. In this equilibrium, both firms choose an output level based on the anticipation of their rival's response. This equilibrium results in the maximization of each firm's profit given the output level chosen by the competitor, which leads to a stable outcome. Isoprofit equilibrium refers to a situation where firms' profit levels are equal, while Stackelberg equilibrium is a form of oligopoly in which one firm acts as the leader, while the others act as followers. Hence, option B is the correct choice.

The Nash Equilibrium Applied to a Model in Which Duopolistic