Prob 10 15. Suppose each member of a diamond cartel consisting of five producers agrees to sell 100 carats of diamonds a day. With 500 total carats being sold, the market price is $1,000/carat, and each firm earns $100,000. Now assume that one producer cheats by producing 110 carats, causing the market price for 510 total carats to drop to $980/carat. How does this action affect the revenues of the cheating firm and the noncheating firms? Suppose the four noncheating firms change course and all produce 110 carats, and the market price for 550 total carats drops to $850/carat. How much does each firm earn now? How important is loyalty to maintaining an effective cartel?