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Remember firms, inside an oligopoly unfavorable reactions economies of scale which become a barrier of entry. They wish to keep those barriers. Should they raise prices to much it then may cover new firms to get in because prices are now adequate to recover the high average cost. But if they keep your price somewhere below ATC (thus loss without normal profit) they're going to keep rivals from entering the market industry. Commonly an oligopoly will trigger price wars by not following leader.

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