Answer: $3; $6
The two firms formed a cartel which means they agree to produce same with the purpose of maintaining prices at a high level and restricting competition. In the case of two firms who agree on producing 6 units but one cheat, this will be the effect:
At 6 units each, and a market price of $10, each firm will have a gross sale of $60. If one cheats and produced 7, the market price will fall to $9, resulting to $63 (7*9) and a gain of $3. The noncheating firm will acquire a sale of $54 (6*9) only or a loss of $6. The answer is $3; $6.
