Considering the situation described above, what will happen in the short run is that "the firm that cheats will earn higher profits, and the industry profits will be lower."
An oligopolistic industry is an industry market where smaller companies offer similar goods and services, operating successfully because there is limited competition.
However, should these oligopolistic firms agree to collude and act as a monopoly, and subsequently one of them later violates the agreement and charging a lower price or sells a larger quantity than what was agreed on, such a firm would benefit with more profit. In contrast, the industry profit would be lower for others.
Hence, in this case, it is concluded that the correct answer is "the firm that cheats will earn higher profits, and the industry profits will be lower."
Learn more about the Oligopolistic industry here: https://brainly.com/question/4487566
