Suppose the marginal benefit of writing a contract is 50


Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: Instruction: Round your answers to 2 decimal places. a. MC(L) = 10 + 2L. b. MC(L) = 5 + 2L. c. What happens to the optimal contract length when the marginal cost of writing a contract declines?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose the marginal benefit of writing a contract is 50
Reference No:- TGS01578253

Expected delivery within 24 Hours