The Federation of Quebec Maple Syrup Producers supplies over three-quarters of the world€™s maple syrup (see the Application €œCheating on the Maple Syrup Cartel€). Under government rules, the member firms jointly market their syrup through the federation, which sets quotas on how much each firm can produce. Show this cartel€™s price determination process using a graph similar to Figure 13.1. Show how much profit a firm would gain by cheating: by producing more than the cartel€™s quota.

Figure 13.1

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