Question

An oligopoly producing a homogeneous product is composed 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	60	$ 60	$ 260	1	$ 260
2	100	40	240	2	220
3	160	60	220	3	180
4	240	80	200	4	140
5	340	100	180	5	100
6	460	120	160	6	60
7	600	140	140	7	20
8	760	160	120	8	-20

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

Thank You