Now suppose the members of this industry are able to come to an agreement to form a cartel, which is perfectly legal for them since they are a group of sovereign nations. Further, suppose they agree to produce some output Q_Cwhich is less than the market output you showed in your graph in Question 5.

• Briefly explain how the group will determine thisQ_Cwhich maximizes the cartel's overall profits and the price charged (P_C), and how they will maintain that level of market output. Illustrate your explanation graphically showing any additional curves relevant to the analysis, as well asQ_CandP_C.
• Graphically show the new CS, PS, and DWL (if there is any), labeling them with a subscript 1 (CS₁,PS₁, andDWL₁).Discuss how they compare to the competitive market outcomes (CS₀,PS₀, andDWL₀).
• How likely is the cartel to maintain this output level over time? What factors may weaken the cartel members' willingness to stick to producing their share of the quota?