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3. Suppose that the two rms collude and set prices to maximize their joint prots instead of playing the N alh equilibrium. Suppose that the

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3. Suppose that the two rms collude and set prices to maximize their joint prots instead of playing the N alh equilibrium. Suppose that the locations are symmetrically locates at o and 10;. What prices would the rm set if it acts like a monopolist (hint: suppose the most a consumer is willing to pay, ignoring the costs is o and that all consumers purchase}? 4. If the rm colludes, where will it locate its two establishments

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