The data for two firms (Firm 1 and Firm 2) are given below. There is no fixed cost.

P	Q	TR	MR	TC	MC	Profit
45	1	45	0	10	0	35
40	2	80	35	20	10	60
35	3	105	25	30	10	75
30	4	120	15	40	10	80
25	5	125	5	50	10	75
20	6	120	-5	60	10	60
15	7	105	-15	70	10	35
10	8	80	-25	80	10	0

A.If the two firms collude and form a cartel, what is the joint profit-maximizing level of output and price? (4 marks)

B. What would happen to Firm 2's profit if it increased its production by one unit while Firm 1 stuck to the cartel agreement? (4 marks)