Multiple Choice
Suppose that the marginal benefit of writing a contract is $100 and the marginal cost of that contract is $50.Based on this information, the optimal contract length should
A) be increased.
B) be decreased by half.
C) be decreased by two-thirds.
D) be held constant at the contract length where MB = 100 and MC = 50.
Correct Answer:
Verified
Correct Answer:
Verified
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