Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal
Question:
a. MC(L) = 10 + 2L.
b. MC(L) = 5 + 2L.
c. What happens to the optimal contract length when the marginal cost of writing a contract declines?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
a When MCL 10 2L the optimal contract length is 20 b ...View the full answer
Answered By
Saud Ur Rehman
Evaluating manufacturing processes by designing and conducting research programs; applying knowledge of product design, fabrication, assembly, tooling, and materials; conferring with equipment vendors; soliciting observations from operators. Developing manufacturing processes by studying product requirements; researching, designing, modifying, and testing manufacturing methods and equipment; conferring with equipment vendors. Keeping equipment operational by coordinating maintenance and repair services; following manufacturer's instructions and established procedures; requesting special service.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Question Posted:
Students also viewed these Economics questions
-
Suppose the marginal benefit of writing a contract is $ 100, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: a. MC (L) = 30 +...
-
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....
-
Suppose the marginal cost of writing a contract of length L is MC (L) = 20 + 5L. Find the optimal contract length when the marginal benefit of writing a contract is: a. MB (L) = 120. b. MB (L) = 180....
-
An arm ABC lying in a horizontal plane and supported at A (see figure) is made of two identical solid steel bars AB and BC welded together at a right angle. Each bar is 20 in. long. Knowing that the...
-
In a study of the accuracy of fast food drive-through orders, Burger King had 264 accurate orders and 54 that were not accurate (based on data from QSR magazine). a. Construct a 99% confidence...
-
A heat pump creates a heating effect of 32,000 Btu/h for a space maintained at 530 R while using 1.8 kW of electrical power. What is the minimum temperature of the source that satisfies the second...
-
BOP and Foreign Exchange. The Swiss franc was officially unpegged from the euro in January 2015. Explain the reason behind this decision with reference to the Swiss BOP.
-
The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following pre-closing trial balance at...
-
A study of an association between which ear is used for cell phone calls and whether the subject is left-hand or right-handed began with a survey e-mailed to 5000 people belonging to an otology...
-
The following data show how the marginal external benefit and marginal private benefit associated with a soil treatment agent to control Japanese beetles vary with the gallons of the control agent...
-
Discuss the impact of the following factors on the optimal method of procuring an input. a. Benefits from specialization. b. Bureaucracy costs. c. Opportunism on either side of the transaction. d....
-
The division of a large office services company that makes high-end copiers recently signed a five-year, $25 million contract for IT services from CGI Group, a Canadian information technology...
-
Sketch the following sets of points (r, ). r 2
-
What two types of procedures are generally involved in the performance of a review service?
-
Enumerate the elements that should be included in a report on interim financial information (IFI) for a public entity.
-
a. Indicate the applicability of generally accepted auditing standards to an examination of financial statements prepared on a comprehensive basis other than GAAP. b. Explain the primary requirements...
-
In reporting on specific elements, accounts or items of a financial statement, what are (a) the applicability of GAAS and (b) the primary reporting requirements?
-
a. What type of assurance is an auditor permitted to give in a compliance report? b. Identify the alternative ways in which this type of special report may be issued.
-
Do you believe a nonprofit leader is better served by developing a variety of decision- making styles or by becoming highly skilled in one particular approach? On what do you base your opinion?
-
Describe basic managerial approaches to implementing controls and how these are implemented.
-
(a) Explain why compound A has a UV spectrum with considerably greater max values and intensities than are observed for ethylbenzene. (b) In view of your answer to part (a), explain why the UV...
-
Classify the following financial instruments as money market securities or capital market securities: a. Bankers Acceptances b. Commercial Paper c. Common Stock d. Corporate Bonds e. Mortgages f....
-
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity of houses painted per month: 1 2 3 4 5 6 7 8 Variable costs: $10, $20, $40,...
-
If a portfolio had a return of 8%, the risk free asset return was 3%, and the standard deviation of the portfolio's excess returns was 20%, calculate the Sharpe measure.
-
2. Perusahaan selam sebulan menjual produknya sebanyak 100 unit. Sediaan produk jadi awal 5 unit, dan sediaan produk jadi akhir 8 unit. Terdapat sediaan produk dalam proses 10 unit dengan tingkat...
-
A tax credit is available for health practitioners in certain rural areas of Oregon. The credit is based on eligibility requirements determined by the Office of Rural Health. Who can claim the...
-
Which of the following statements is true concerning the credit taken for income taxes paid to another state? Question 10Select one: a. If a taxpayer pays tax to Oregon and another state on the same...
Study smarter with the SolutionInn App