The demand for y is given by y = 256/p².Only two firms produce y.They have identical costs c(y) = y².If they agree to collude and maximize their joint profits, how much output will each firm produce?

A) 2
B) 5
C) 10
D) 12
E) 16

Collude

Cooperative behavior between firms in a market to set prices or output levels artificially high, typically in a way that is not in the best interests of consumers.

Maximize Profits

The process of increasing the difference between total revenue and total costs to reach the highest possible financial gain.

Identical Costs

Costs that are the same in value or magnitude for different firms or production processes.