FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the marginal benefit of writing a contract is $90 and the marginal cost of that contract is $80. Based on this information, the

image text in transcribed
image text in transcribed
Suppose that the marginal benefit of writing a contract is $90 and the marginal cost of that contract is $80. Based on this information, the optimal contract length should O be decreased by two-thirds. be decreased by half. be held constant at the contract length where MB = 90 and MC = 80. be increased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics of Women Men and Work

The Economics of Women Men and Work

Authors: Francine D. Blau, Marianne A. Ferber, Anne E. Winkler

7th edition

978-0190670863, 019067086X, 132992817, 978-0132992817

More Books

Students also viewed these Economics questions

Question

★★★★★
What is a salespersons commission on net sales of $16 244 if the commission is paid on a sliding scale of 8 14% on the first $6000, 9 34% on the next $6000, and 11.5% on any additional net sales?

Answered: 1 week ago

Question

★★★★★
What is meant by an economic order quantity?

Answered: 1 week ago

Question

★★★★★
=+b) Do the conditions for an ANOVA seem to be met here? Why or why not?Miles per Gallon 20 25 30 35 4 5 6 8 Cylinders

Answered: 1 week ago

Question

★★★★★
The ledger of Witzling, Inc. on March 31, 2012, includes the following selected accounts before adjusting entries. An analysis of the accounts shows the following:1. Insurance expires at the rate of...

Answered: 1 week ago

Question

★★★★★
A net promoter score survey was given to users of an Internet site following an online purchase. The results of the survey are shown below. Compute the NPS for the Internet site and make a...

Answered: 1 week ago

Question

★★★★★
a. Illustrate graphically how leverage impacts the cost of equity, cost of debt, and WACC under Modigliani & Miller's two propositions. Consider both a situation without and with corporate taxes....

Answered: 1 week ago

Question

★★★★★
1) BobTheCat Enterprises has asked FoxFirst Consulting to help with upgrading 600 desktop users from Windows 7 to Windows 10. As per contract, FoxFirst will provide the upgrade strategy. Discuss...

Answered: 1 week ago

Question

★★★★★
Harvey's Restaurants In your own words, explain the Harvey's brand, Canadian values, and range of products/services. A minimum of four sentences is required here. Strengths Explain three (3)...

Answered: 1 week ago

Question

★★★★★
Find the initial basic feasible solution for the TP by VAM. D D2 D3 Dy Supply Dz 0, 11 13 17 14 250 02 16 16 18 14 10 300 03 21 24 13 10 400 Dem 200 225 275 250 950

Answered: 1 week ago

Question

★★★★★
3. Both Hawks Nest and the Upper Big Branch mine were underground work locations. Does this have any significance in the hiding of safety violations? If so, how? 4. Why would a modern organization...

Answered: 1 week ago

Question

★★★★★
Any device which carries data between end devices? The answer i picked is Intermediary Device is that correct if not what would the answer be?

Answered: 1 week ago

Question

★★★★★
3. The table below reports per capita GDP and capital per person in the year 2007 for 8 countries. k = K / L y =Y/L k/ KUSA y / yUSA Pred. y / yUSA Implied TFP U.S. 135,877 42,877 1.000 1.000 1.000...

Answered: 1 week ago

Question

★★★★★
5. Give an example of how the consensus principle can be used to influence others.

Answered: 1 week ago

Question

★★★★★
9. Give an example of how the word because can trigger a cognitive reflex in another party.

Answered: 1 week ago

Question

★★★★★
7. Give an example of how the authority principle can be used to influence others.

Answered: 1 week ago

Previous Question Next Question