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(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?