If firms in an oligopolistic industry consistently cut their price to sell more output,what price and output will result?

Question

Quizplus · Accepted Answer

In an oligopolistic industry, if firms consistently cut their prices to sell more output, they will eventually reach a point where the price and output resemble those of a perfectly competitive market. This is because continuous price cutting leads to a situation where firms can no longer sustain profits at a higher price level, thus moving towards the competitive equilibrium.

If Firms in an Oligopolistic Industry Consistently Cut Their Price