10. Suppose the marginal cost of writing a contract of length L is MC(L) 10 ...

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10. Suppose the marginal cost of writing a contract of length L is MC(L) 10 2L.

Find the optimal contract length when the marginal benefit of writing a contract is:

a. MB(L) 100.

b. MB(L) 150.

c. What happens to the optimal contract length when the marginal benefit of writing a contract increases?

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Managerial Economics And Business Strategy

ISBN: 9780073375960

7th Edition

Authors: Michael Baye

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Question Posted: Oct 07, 2024 07:03 AM

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10. Suppose the marginal cost of writing a contract of length L is MC(L) 10 ...

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Managerial Economics And Business Strategy

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