Suppose demand for a product was given by: P =1200 - 0.1Q and the marginal cost of producing it was given as: MC = 300. If there were 2 firms in the industry, each firm would face a demand of P = 2100 - 0.3Q.

c) If each firm operates independently, how much will each firm produce and what is the total production? What price do they charge?

d) If the 2 firms formed a cartel what price-output combination would they choose?