Multiple Choice
Suppose that the marginal benefit of writing a contract is $100 and the marginal cost of that contract is $150.Based on this information, the optimal contract length should be
A) increased by half.
B) increased by two-thirds.
C) decreased.
D) held constant at the contract length where MB = 100 and MC = 150.
Correct Answer:
Verified
Correct Answer:
Verified
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