If the output effect from increased production is larger than the price effect, then an oligopolist would increase production.

Output Effect

The impact on total production in the economy resulting from changes in price levels, often analyzed in the context of supply and demand shifts.

Price Effect

The impact on consumer behavior and market demand resulting from a change in the price of a good or service, influencing buying decisions.

Oligopolist

A firm or individual that is part of a market structure in which a few companies control the majority of market sales.