Question: Fill in the chart below by calculating the initial profits of two colluding firms that set the given market price and then their profits if

Fill in the chart below by calculating the initial profits of two colluding firms that set the given market price and then their profits if LutherCo produces 40 units instead of 30. Assume that it costs each firm $5 to produce each unit.

LutherCo Hartwell Market Collusive 30 30 60 quantity Collusive 65 65 65 price Collusive profits Cheating 40 30 70 quantity Cheating 55 55 55 price Cheating profits Difference in profits

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