How much will firm one sell if it cheats on the cartel, Microeconomics

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How much will firm one sell if it cheats on the cartel

Problem

A market has an inverse demand function defined by

p = 200 - 0.5X

Two firms exist in this market that have identical total costs. For firm 1 these are defined by

TC1 = X1 + 0.5X1

with an equivalent definition for firm 2.

(a) If these two firms form a cartel, define the cartel's, marginal cost function.

(b) What is the cartel's profit maximising output and the profit earned?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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