Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal
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Question:
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 lengthLis:
Instruction:Enter your responses rounded to two decimal places.
a.MC(L) = 25 + 4L.
b.MC(L) = 45 + 2L.
Expert Answer:
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