Question: Compare the optimal solutions obtained in Exercises 2 and 3. Specifically: a. How much higher (lower) is the optimal selling price when the two firms

Compare the optimal solutions obtained in Exercises 2 and 3. Specifically:

a. How much higher (lower) is the optimal selling price when the two firms form a cartel to maximize industry profits, compared to when they act independently?

b. How much higher (lower) is total industry output?

c. How much higher (lower) are total industry profits?

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