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Suppose the marginal benefit of writing a contract is $50, independen.pdf

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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: Enter your responses rounded to two decimal places. a. MC(L)=20+4L b. MC(L)=40+2L. c. What happens to the optimal contract length when the marginal cost of writing a contract declines?.

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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: Enter your responses rounded to two decimal places. a. MC(L)=20+4L b. MC(L)=40+2L. c. What happens to the optimal contract length when the marginal cost of writing a contract declines?

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  • 1. 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: Enter your responses rounded to two decimal places. a. MC(L)=20+4L b. MC(L)=40+2L. c. What happens to the optimal contract length when the marginal cost of writing a contract declines?