Suppose two firms compete in quantities (Cournot) in a market in which demand is described by: P=260-2Q. each firm incurs no fixed cost but has a marginal cost of 20.

Now imagine they collude to produce the monopoly output.

Suppose that after the cartel is established, firm 1 decides to cheat on the collusion, assuming the other firm will continue to produce its half of the monopoly output.

What will be the industry price if this continues?

a.90 b.120 c.110 d.100