A small town has two bakeries, Acme and Fat Apple. Acme's marginal cost to make a loaf of bread is $1 and Fat Apple's marginal cost is $2. Acme's demand function is given as Q1 = 14 - P1 - 0.5P2 and Fat Apple's demand function is Q2 = 19 -0.5P1 - P2 where P1 (P2) is Acme (Fat Apple)'s price in dollars per loaf of break and Q1 (Q2) is measured in thousand loaves of Amce (Fat Apple)'s bread (respectively). Find best response functions. O P1 = 7.5 - 0.25P2 and P2 = 10.5 - 0.25P1. O P1 = 7.5 - 0.25P2 and P2 = 10.5 - 0.5P1. P1 = 7.5 - 0.5P2 and P2 = 10.5 - 0.5P1. O P1 = 10.5 - 0.25P2 and P2 = 10.5 - 0.25P1