You recently acquired a bakery on the main downtown street. There is another bakery not far away. Otherwise, you facelimit your production of cakes, but charge a high price for them; or (3) politely engage the owner of the other bakery in a conversation, and consider proposing that the two of you collude on prices and adjust your production levels accordingly. Depending on what the owner seems to be like, which of the choices would be best from the standpoint of profitability? Discuss the possibilities fully.