A group of firms, operating in collusion, incur costs of production of $30 per unit. The price that currently maximizes their profit is $36.

1.                 A group of firms, operating in collusion, incur costs of production of $30 per unit. The price that currently maximizes their profit is $36. Knowing that potential competitors could enter the market with production costs of $28 per unit, what price are the colluders likely to charge? Why? Illustrate with graphs