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(b) (6 points) Suppose the rms are operating in a country with loose anti-trust law, and the two rms realize that collusion may increase total

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(b) (6 points) Suppose the rms are operating in a country with loose anti-trust law, and the two rms realize that collusion may increase total prots. 1. Solve for the collusion price and Outputs for each rm. Given the outputs and price, how much is the total prots and prots for each rm? ii. Is the collusion result stable? Explain why. (c) (5 points) Does rm 1 have incentive to become the quantity leader, compared with being the quantity follower and Cournot competitor? You don't need to solve the problem numerically. Just use a graph to explain your answer clearly

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