In an oligopoly market, each firm may agree to cut prices if another firm cuts prices and implicitly agree to increase quantity if a firm increases prices. What is the behavior of firms in an oligopoly market?
1) Firms agree to cut prices if another firm cuts prices
2) Firms agree to increase quantity if a firm increases prices
3) Firms agree to maintain prices regardless of the actions of other firms
4) Firms agree to decrease quantity if a firm increases prices
