Assume the firms in an oligopoly produce a differentiated product and

Assume the firms in an oligopoly produce a differentiated product and are initially colluding.

If each firm begins to cheat (to increase sales) by underpricing the other firms, as the amount of cheating increases, the resulting industry price and output will approach the outcome for: A) perfect competition.
B) monopolistic competition.
C) noncooperative monopoly.
D) noncooperative oligopoly.

ANSWER

D