Suppose the marginal benefit of writing a contract is $ 100, independent of its length. Find the
Question:
a. MC (L) = 30 + 4L.
b. MC (L) = 40+ 5L.
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:
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
Question Posted: