Question

An oligopoly producing a homogeneous product is comprised ofthree firms that act like a cartel. Assume that these three firmshave identical cost schedules. Assume also that if any one of thesefirms sets a price for the product, the other two firms charge thesame price. As long as they all charge the same price they willshare the market equally; and the quantity demanded of each will bethe same.

Below are the total-cost schedule of one of these firms andthe demand schedule that confronts it when the other firms chargethe same price as this firm.

Output	Total Cost	Marginal Cost	Price	Quantity Demanded	Marginal Revenue
0	$ 0
1	180	$180	$ 780	1	$780
2	300	120	720	2	660
3	180	180	660	3	540
4	720	240	600	4	420
5	1020	300	540	5	300
6	1380	360	480	6	180
7	1800	420	420	7	60
8	2280	480	360	8	-60

B) If the firms collude to maximize joint profits, what would bethe industry price, output, and profit?

Thank You