1. The market for olive oil in New York City is Price of Olive Quantity of Olive Oil controlled by two families, the Sopranos and Oil (per gallon) Demanded (gallons) the Contraltos. Both families will ruthlessly eliminate any other family that attempts to $10 10 enter the New York City olive oil market. The $9 15 marginal cost of producing olive oil is constant and equal to $4 per gallon. There is no fixed $8 20 cost. The accompanying table gives the $7 25 market demand schedule for olive oil. $6 30 a. Suppose the Sopranos and the Contraltos form a cartel. How many $5 35 gallons of olive oil would the cartel sell $4 40 in total and at what price? The two families share the market equally $3 45 (each produces half of the total output $2 50 of the cartel). How much profit does each family make? $1 55 b. Uncle Junior, the head of the Soprano family, breaks the agreement and sells 5 more gallons of olive oil than under the cartel agreement. Assuming the Contraltos maintain the agreement, how does this affect the price for olive oil and the profits eamed by each family? C. Anthony Contralto, the head of the Contralto family, decides to punish Uncle Junior by increasing his sales by 5 gallons as well. How much profit does each family earn now