Answer:
b. a. reduces the price of their product.
Step-by-step explanation:
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by :
price setting firms
product differentiation
profit maximisation
high barriers to entry or exit of firms
downward sloping demand curve
interdependence among firms
an oligopoly can either set the price of their product or the quantity and not both. if quantity is increased, the price would drop
If prices are increased, the quantity demanded would fall.