Consider two oligopolists, each choosing between a "high" and a "low" level of production. Given their
choices of how much to produce, their profits will be as follows:
![314_2a288d23-7aad-46d1-9a1b-7aae40587302.png](https://secure.tutorsglobe.com/CMSImages/314_2a288d23-7aad-46d1-9a1b-7aae40587302.png)
Explain how firm B will reason that it makes sense to produce the high amount, regardless of what firm A chooses. Then explain how firm A will reason that it makes sense to produce the high amount, regardless of what firm B chooses. How might collusion assist the two firms in this case?