Isabella runs an IT solutions business for her college peers and has only one competitor, Franco.Isabella and Franco have decided to collude andprovide monopoly-level output. Given that theyare both freshmen and intend to run their businesses for the next three years, is this agreementsustainable? Would your answer change if Francoknew he planned to transfer to another collegenext year?

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A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…

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A: As per the policy we only answer up to 3 subparts at a time. Subparts a-c will be answered here.…