kjredd6132 kjredd6132

21-03-2024
Business

contestada

Suppose the marginal cost of writing a contract of length L is MC(L) = 40 + 3L. Find the optimal contract length when the marginal benefit of writing a contract is:
Instruction: Round your answers to 2 decimal places.
a. MB(L) = 130.
b. MB(L) = 170.
c. What happens to the optimal contract length when the marginal benefit of writing a contract increases?

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