PI 3.5 Cartel Equilibrium. Assume the Hand Tool Manufacturing Industry Trade Association recently published the following estimates of demand and supply relations for hammers A. Calculate the perfectly competitive industry equilibrium price-output combination.

B. Now assume that the industry output is organized into a cartel. Calculate the industry price-output combination that will maximize profits for cartel members. (Hint: As a cartel, industry MR = $6 - $0.0002Q.)

C. Compare your answers to parts A and B. Calculate the price-output effects of the cartel.