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Cant understand what to do, can I help on this problem then an explanation please? Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of

Cant understand what to do, can I help on this problem then an explanation please?

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Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) ( Dollars) 3.60 0 3.30 35 115.50 3.00 70 210.00 2.70 105 283.50 2.40 140 336.00 2.10 175 367.50 1.80 210 378.00 1.50 245 367.50 1.20 280 336.00 0.90 315 283.50 0.60 350 210.00 0.30 385 115.50 0 420 0 Suppose Brian and Crystal form a cartel and behave as a monopolist. The profit-maximizing price is |$ per gallon, and the total output is gallons. As part of their cartel agreement, Brian and Crystal agree to split production equally. Therefore, Brian's profit is , and Crystal's profit is|$ Suppose that Brian and Crystal have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Brian says to himself, "Crystal and I aren't the best of friends anyway. If I increase my production by 35 gallons, I can increase my profit even though her profit goes down. I will do that starting tomorrow." After Brian implements his new plan, the price of water to S Brian's profit becomes | $ per gallon. Given Crystal and Brian's production levels, and Crystal's profit becomes |$ Because Brian has deviated from the cartel agreement and increased his output of water by 35 gallons, Crystal decides that she will also increase her production by 35 gallons. After Crystal increases her production, Brian's profit becomes $ sum of the profits of Brian and Crystal) is now | $ Crystal's profit becomes |$ and total profit (the Note that Brian and Crystal started by behaving cooperatively. However, once Brian decided to cheat, Crystal decided to cheat as well. In other words, Crystal's output decisions are based on Brian's actions. Activ Go to This behavior is an example of

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