Consider corporations that use advertising firms to develop marketing campaigns. The market cost per firm is M =
120/n and labor cost per firm is L = 30 * n, where n is the number of corporations. Total revenue is R = $300 and profit is P = R - M - L.
A) illustrate the determination of Nash equilibrium, including values for the number of firms and profit per firm.
B) illustrate the determination of the Pareto-efficient outcome, including values for the number of firms and profit per firm.
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