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The manufacturers of Allude Shampoo and BriteLite Shampoo are trying to form a cartel. The market demand for shampoo is Qd= 900 - 8P. Allude's marginal cost is MCa = 0.08 Qa and BriteLite's is MCb = 0.14 Qb. Don't forget that Qd = Qa + Qb.

Solve this cartel problem and show the profit maximizing solution for price and output allocation on a graph with key values.

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