Consider a market in which demand is given by P(Q)=A-3Q

Assume that A=168.0. There are two identical firms in this market. Each has cost of C=24.0Q and marginal cost MC=24.0. The firms are competing in prices (Bertrand competition). Now firm 1 has the opportunity to lobby the government so that the government shuts down the opponent firm. Assume that only firm 1 has this opportunity. However, lobbying is costly Calculate the maximal amount firm 1 is willing to invest in lobbying, if lobbying leads to a shut down of firm 2. No units, no rounding