The collusion problem of a cartel is simplified as follows. There are two firms, A and B. Each firm can choose to produce two levels of output, H (high) or L (low). The payoffs to the firms are summarized in the following matrix: B's payoff A's payoff H L H (2,2) (14,0) L (0,14) (8,8) i. The cartel agreement is for each firm to produce a low level (L). What are the payoffs to the firms if the agreement is observed? ii. Explain why individual firm has no incentive to produce a low level of output as specified in the agreement.