(c) [10 marks] Consider the theoretical framework of the size of the cluster. Consider
manufacturing firms that use advertising firms to develop marketing campaigns. The
marketing cost per manufacturing firm is M=120/n and the labour cost per
manufacturing firm is L=30n where n is the number of manufacturing firms in a local
labour market. The total revenue of manufacturing firm is R=$300 and profit is π=R- M-L. What is the number of manufacturing firms in the location in the efficient
outcome? In equilibrium, what is the number for manufacturing firms in the location?