Question: This is a scenario Question which is from time to time, one of the firms in an oligopoly situation will take the decision to drop

This is a scenario Question which is from time to time, one of the firms in an oligopoly situation will take the decision to drop prices against its rivals knowing that it could not be sustained. Like an airline advertising a cheap one-way fare to Florida for $49 when the regular price is $125.What is the idea behind this move and how do the rivals react?

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