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Please answer all parts of the question- refer to the screenshot below. Thank you for all your help! Acme and Business are two firms selling

Please answer all parts of the question- refer to the screenshot below. Thank you for all your help!

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Acme and Business are two firms selling a homogenous product. They face a yearly inverse demand P = 14-P. The two firms compete a la Cournot. Suppose that both ACME and Business have a cost function TC(q) = 3q. a. Find the firms' best response functions and plot them in a diagram where you measure ACME's quantity along the horizontal axis and Business's quantity along the vertical axis. b. Find the Cournot equilibrium quantities at the two firms. c. Find the market price. d. Compute the two firm's profit. Now suppose ACME could buy a yearly license that would lower its marginal cost to MC = 1 so that ACME's total cost would now become TC'(qA) = qA + FC where FC is the yearly cost of the license. e. What is the highest price ACME is willing to pay for the yearly license

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