If firms form a cartel and coordinate their production, what is the optimal total output for the cartel, the corresponding market price, and the resulting total profit?

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2 million barrels daily, $100 per barrel, $60 million profit4 million barrels daily, $80 per barrel, $160 million profit6 million barrels daily, $60 per barrel, $60 million profit8 million barrels daily, $40 per barrel, $20 million profit

Explanation

When firms collude as a cartel, they maximize joint profits by producing 4 million barrels per day. At this output, the price settles at $80 per barrel, generating total profits of $160 million for the cartel.