Which of the following will happen if a firm in a duopoly with homogeneous products increases its price above its marginal cost once a Nash equilibrium is reached?

Question

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In a duopoly with homogeneous products, if one firm increases its price above its marginal cost once a Nash equilibrium is reached, it will lose all its customers to its rival. This is because consumers have no reason to pay a higher price for the same product when a cheaper option is available from the rival firm. Therefore, the firm will not gain market share and may not earn any economic profit.

Which of the Following Will Happen If a Firm in a Duopoly