User Account

All Pages

Marginal cost of writing a contract of length

Assignment Help Business Economics
Reference no: EM132492560

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 length L is:

Instruction: Enter your responses rounded to two decimal places.

a. MC(L) = 40 + 2L.

b. MC(L) = 20 + 5L.

c. What happens to the optimal contract length when the marginal cost of writing a contract declines?

(Click to select)

It decreases.

It stays the same.

It increases.

Reference no: EM132492560

Questions Cloud

Calculate the difference between the new DJIA levels : Calculate the difference between the new DJIA levels under the following two scenarios (i.e.g, Scenario 1 - Scenario 2)
What discount rate indifferent between accept and reject : At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations)
What is the marginal benefit and cost : In a demand and supply diagram, at unit 5, the price on the demand curve is $20 and the price on the supply curve is $14. The market price is $16.
What would the DJIA level be at the end of the day : Suppose on this day the prices for 29 of the stocks remained unchanged and one stock increased $15.00. What would the DJIA level be at the end of the day
Marginal cost of writing a contract of length : 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 contr
What discount rate would the company : What discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer
Incentive to maximize the firm profits : Explain why this manager might nonetheless have a strong incentive to maximize the firm's profits.
What is the index level at the end of the year : Assume that you want to re-index with the index value at the beginning of the year equal to 100. What is the index level at the end of the year
Estate Finance Family Tax Plan Questions : Estate Finance Family Tax Plan Questions - How much income or loss does Jeff recognize on the sale? Analyze what Jeff's basis is in the stock and why

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd