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Dewey, Cheatem, and Howe have a law firm organized as a partnership. Profits are divided equally among the three partners without regard to their


Dewey, Cheatem, and Howe have a law firm organized as a partnership. Profits are divided equally among the three partners without regard to their relative productivities. a. (5 points) Does a public good exist among the partners of this law firm? How do you know? b. (5 points) Assume that instead of a partnership, the three lawyers simply share rent on the office space they occupy and conduct separate private practices. Should they work harder or less hard under this alternative arrangement? Explain your answers with reference to public goods and their properties.

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