The quantity that will maximize the cartel's profit is 90 million pounds and Ajinomoto will have an incentive to increase the output of MSG.
From the complete information, it should be noted that at the maximum profit level, the marginal revenue will be equal to the marginal cost.
From the table, the profit-maximizing output level is at the point where the marginal revenue is near zero. As illustrated in the diagram, this is at 30 units and 90 million pounds. Therefore, Ajinomoto will have an incentive to increase output of MSG.
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