Suppose that the (inverse) market demand function for wax paper is P=400-2Q where Q is total industry output. There are only two firms, Firm1 and Firm 2, that produce wax paper. Thus, Q=q₁+q₂. Each firm has no fixed cost but a constant marginal cost of production equals $40.

(a) Suppose that the two firms decide to form a cartel. Calculate the output quantity for Firm 1

(b) Suppose that the two firms decide to form a cartel. Calculate the profit for Firm 1

(c) Suppose Firm 1 decides to cheat while Firm 2 still chooses her output in (b). Find the profit of Firm 1

(d) From (c), calculate the profit of Firm 2