14. [15 pts] There are two law firms in Orange County, owned by Bob Loblaw (Firm...

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14. [15 pts] There are two law firms in Orange County, owned by Bob Loblaw (Firm 1) and Barry Zuckerkorn (Firm 2) which act as a duopoly. The demand for legal services is P = 30 - Q where Q is the combined about of legal services, Q1+Q2. The cost of providing legal services for both Bob and Barry is zero, MC1=MC2=0. a) Solve for Bob's reaction curve (Q1) as a function of Barry's output (Q2). wwwwwmm b) In a Cournot equilibrium, how much legal services will Bob Loblaw and Barry Zuckerkorn (Q1 and Q2) decide to provide? c) Given your answer to b), how much will each firm earn in profit? d) Suppose instead Bob and Barry decide to form a cartel. How much legal services will earn firm produce and how much profit will each firm earn? 14. [15 pts] There are two law firms in Orange County, owned by Bob Loblaw (Firm 1) and Barry Zuckerkorn (Firm 2) which act as a duopoly. The demand for legal services is P = 30 - Q where Q is the combined about of legal services, Q1+Q2. The cost of providing legal services for both Bob and Barry is zero, MC1=MC2=0. a) Solve for Bob's reaction curve (Q1) as a function of Barry's output (Q2). wwwwwmm b) In a Cournot equilibrium, how much legal services will Bob Loblaw and Barry Zuckerkorn (Q1 and Q2) decide to provide? c) Given your answer to b), how much will each firm earn in profit? d) Suppose instead Bob and Barry decide to form a cartel. How much legal services will earn firm produce and how much profit will each firm earn?