Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 5.00 O 5.50 $275.00 5,00 100 $500.00 1.50 150 $675.00 4.00 200 $800.00 3.50 250 $875.00 3.00 300 $900.00 2.50 350 $875.00 2.00 400 $800.00 1.50 450 $675.00 1.00 500 $500.00 0.50 550 $275.00 O 600 Suppose Isaiah and Dalia form a cartel and behave as a monopolist. The profit-maximizing price is |$ per gallon, and the total output gallons. As part of their cartel agreement, Isaiah and Dalia agree to split production equally. Therefore, Isaiah's profit is ,and Dalia's profit.is $ Suppose that Isaiah and Dalia 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, Isaiah says to himself, "Dalia and I aren't the best of friends anyway. If I increase my production to 50 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow." After Isaiah implements his new plan, the price of water to $ per gallon. Given Dalia and Isaiah's production levels, Isaiah's profit becomes $ and Dalia's profit becomes $ Because Isaiah has deviated from the cartel agreement and increased his output of water to 50 gallons more than the cartel amount, Dalia decides that she will also increase her production to 50 gallons more than the cartel amount. After Dalia increases her production, Isaiah's profit becomes |$ Dalia's profit becomes | $ and total profit (the sum of the profits of Isaiah and Dalia) is now $