Server 2016 Datacenter setup/deploy

(assuming proper core licensing) 

If i understand correctly, with Server 2016 Datacenter, we can install Datacenter as the Hyper-V Core.

and then install an unlimited number of Server 2016's Virtual Machines as part of the Datacenter license?

If the above is correct:

1) on the Server 2016 VM's, do i install the Standard or the Datacenter version?

2) how are those Server 2016 VM's then licensed/Activated?

thanks,