From what I read, it seems you haven't mounted a hard disc drive, but instead tried to use your cd drive folder as your "hdd", and since your cd is a "read only" you won't be able to install the game onto that.
You will, of course, need to mount a hard disc drive to install the game onto.
try
mount c [whatever path to DOSBox's games folder]
mount d [whatever path to your cd drive folder]
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