In an oligopoly market, if two firms A and B engage in a price war, what is the likely outcome in terms of economic profit, assuming both firms reach a Nash Equilibrium?

In an oligopoly market, when two firms like A and B get into a price war, they start lowering their prices to attract more customers from each other. This can lead to a situation where both firms keep cutting prices until they reach a point where neither can lower their prices further without losing money. At this stage, known as Nash Equilibrium, both firms are making just enough revenue to cover their costs but not making any economic profit, which means they aren't making extra money beyond what's needed to stay in business. For example, if Firm A and Firm B both sell a product for $10 and their costs are also $10, they won't earn any profit. Ultimately, the price war can lead to intense competition that drives profits down to zero for both firms.