Question 11 1 pts Consider a potential trading relationship between a law rm and a business client. The marginal cost of production for the law rm is given by MC = 2q, where q is the quantity of legal services provided. The demand curve for the client is MB = 150 - q. Note, however, that it is difcult to ascertain how many unit of legal service are actually provided. To (partially) remedy this, the law rm can adopt a recording system at a cost of $150. Similarly, for $150 the client can implement an auditing system to try to verify the number of legal services actually provided by the law rm. However, even if both rms implement the auditing and recording systems, only 30 units of legal services will actually be traded. What is the total agency cost? 0 None of the above. 0 $1000 0 $800 0 $900 0 $1100