Film producer S costs c=20 to produce one film. B, a movie distributor, earns v=120 if the movie is distributed. In order for B to distribute the movie, it must be purchased from S. If there is no transaction between S and B, each earns a profit of zero.
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Film producer S costs c=20 to produce one film. B, a movie distributor, earns v=120 if the movie is distributed. In order for B to distribute the movie, it must be purchased from S. If there is no transaction between S and B, each earns a profit of zero.
Find the profit of S based on the transaction price formed when B is the price acceptor and S is the price adjuster.
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