Two firms produce high quality aloha shirts: Hawaiian Wear (HW) and Island Wear (IW). Each firm has the same cost function given by TC = 20Q + Q^2. The market demand for aloha shirts is P = 200 - 2QT where QT is the total output of the two firms. Suppose the managers of the two firms decide to collude. If they formed a cartel, what would be the profit maximizing level of output?
a. 45
b. 22.5
c. 30
d. 36