The outcome of a competitive oligopoly:

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In a competitive oligopoly, firms compete with each other, which leads to lower prices and higher output compared to a monopolist. This competition also incentivizes firms to be more efficient in their production processes, leading to lower costs and higher quality products. Therefore, the outcome of a competitive oligopoly is more efficient than that of a monopolist. However, it is less efficient than that of colluding oligopolists who can restrict output and raise prices to maximize profits. Finally, the competitive oligopoly outcome is also more efficient than that of a perfectly competitive outcome because in a perfectly competitive market, firms have zero market power and cannot earn profits in the long run.

The Outcome of a Competitive Oligopoly