suppose the firms 1 and 2 could agree that for every unit of output produced by firm 1, the firm must pay a tax t1 to firm 2, and that firm 2 must similarly pay a tax t2 to firm one for every unit of output produce by firm 2. Explain how these taxes can increase the profits of both firms. Assuming that t1 = t2 = t, find the equilibrium quantities with the taxes. What is the tax level that maximizes the firms profits when there are no costs of production for any firm operating in the market