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Suppose that both firms decide to collude (form one firm) and maximize profits as one entity. What is going to be the overall production level they choose and the profit they make, respectively (compute the quantity and profit of the big firm and not of the individual firms)[problem 14]
a) 3 unit, $12
b) 4 units, $24
c) 6 units, $36
d) 7 units, $38
e) 8 units, $24
Please show how you got the answer.
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