If an oligopolists fixed costs increase its price will and i

If an oligopolist’s fixed costs increase, its price will          and its profit will         .

Solution

Answer is Stay the same; decrease.

Explanation:

Oligopolist market is a market where few sellers exist and they have to charge the price after studying the competitor\'s policy and in collusion with the other producers.

Therefore, if the fixed cost increases, the producer is not able to change the price due to elastic demand and hence, the profits of the firm decreases.