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Suppose the marginal benefit of writing a contract is $70, independent of its length. Find the optimal contract length when the marginal cost of writing
Suppose the marginal benefit of writing a contract is $70, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of lengthLis:
a.MC(L) = 50 + 2L.
b.MC(L) = 40 + 2L.
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