QFresh, a brand for energy drinks, launched a healthy lime-based drink

QUESTION

QFresh, a brand for energy drinks, launched a healthy lime-based drink without preservatives. Immediately after this another brand, Fast Fizz, which manufactures energy drinks, also announced the launch of a new refreshing drink without preservatives.

Then Ignite, a third brand of energy drinks, reduced the price of its apple-based drink. Which of the following is most likely to happen in this oligopolistic market setup?

A. QFresh and Fast Fizz will reduce the prices of their respective drinks.

B. Fast Fizz will launch another new drink.

C. QFresh will link up with Ignite to launch a completely new product.

D. Fast Fizz and Ignite will collaborate against QFresh.

E. QFresh will have an increased domestic consumption.

ANSWER

A