In oligopoly industries, when one firm increases its output, price (options: increases; decreases; stays the same).

b). this increases the profit of the firm if the (options: quantity; price) effect is greater than the (options: quantity; price) effect.

c). since firms will increase output as long as they believe that individual profits will increase:

1). firms will produce the perfectly competitive output.

2). firms will produce more output than is optimal for the industry as a whole.

3). firms will be able to maximize individual profits.

4). firms will produce the monopoly output.