If oligopolists start cutting prices to capture a larger market share,the result will be
A)Lower prices,decreased output,and larger profits.
B)Higher prices,increased output,and larger profits.
C)Lower prices,increased output,and larger profits.
D)Lower prices,increased output,and smaller profits.

Question

Quizplus · Accepted Answer

In an oligopoly, if firms start cutting prices to capture a larger market share, it typically leads to lower prices and increased output as firms try to outdo each other. However, the intense competition and lower prices generally result in smaller profits for the firms involved.

If Oligopolists Start Cutting Prices to Capture a Larger Market