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4.a 4.b 4.c A and B are neighboring countries. Although both would spend positive amounts on armaments even if the other spent nothing, each spends

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4.a 4.b 4.c A and B are neighboring countries. Although both would spend positive amounts on armaments even if the other spent nothing, each spends more if the other does. Their utility functions are the following UA(RA,RB) = 40RA 10123 + RARE Rj UB RA,RB) = 321:3 819 + RARE R; where UA is A's utility, UB is 3'5 utility, RA is A's expenditure on armaments and RB is the B's expenditure on armaments. In part c of this question, you are to use the approach taken in the Cournot duopoly model. Confirm that the above two utility functions imply that more armament spending by A would increase armament spending by B. Confirm that more armament spending by B would increase armament spending by A. Confirm that each country would spend on armaments even if the other spent nothing. Calculate the equilibrium amount of armament spending of A and B

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