February 25, 2020 T2 Collusion 110 115 6050 6050 Cournot 147 5353 5353 Defection Threat We're continuing our investigation of the latinum duopoly. Recall that P = 225 - Q and that TC=5q. Assume that both firms choose a quantity to produce simultaneously. 1. Compute the values for the 'Defection' row: a scenario where the firms agree to collude as a monopoly, but Firm 1 defects. (Find the profit maximizing quantity for Firm 1 to produce if Firm 2 produces the collusion quantity). (2 pts)