Suppose instead that the firm's colluded and acted like a single monopolist. So the market demand curve is now:P = 248000 - 200Q where Q = Q_A+Q_B. Assume that MC = $800. Calculate the profit maximizing market output and price levels. Assume that each firms produces half of the market output and splits evenly the monopoly profit. What are the output and profit levels for each firm?

Suppose firm A believes that firm B will produce the output level identified in part c.Is it optimal for firm A to produce their output level identified in part C, or would there be another output level for firm A to maximize their own profits?