Suppose the marginal benefit of writing a contract is 100

Assignment Help Econometrics
Reference no: EM13379504

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 + 4L.

b. MC(L) = 40 + 5L.

Reference no: EM13379504

Questions Cloud

1 suppose the marginal costs of reading are consatnt and : 1. suppose the marginal costs of reading are consatnt and the marginal benefits of reading declineover time. initially
Demand for potatoes is given by qd 109p withq : demand for potatoes is given by qd 109p withq measured in tons. the supply of potatoes is given by qsp2.a
An investor wants to earn a yield of 9 from a 10000 bond : an investor wants to earn a yield of 9 from a 10000 bond with a coupon rate of 6 payable semiannually. the bonds life
Helen just bought a house for 250000 earthquake insurance : helen just bought a house for 250000. earthquake insurance which would pay 250000 in the event of a major earthquake is
Suppose the marginal benefit of writing a contract is 100 : suppose the marginal benefit of writing a contract is 100 independent of its length. find the optimal contract length
Assume the consumption function is given by c20005y-t and : assume the consumption function is given by c2000.5y-t and the investment function is i1000-200r where r is in percent.
1 why have economic analyses of clinical and administrative : 1. why have economic analyses of clinical and administrative innovations become more important?2. a clinic finds that
The market equilibrium price for coffee beans in ecuador is : the market equilibrium price for coffee beans in ecuador is 2.75pound a price at which growers are unable to make a
Is the following statement correct or incorrect if a firm : is the following statement correct or incorrect if a firm operating in a monopoly or imperfectly competitive industry

Reviews

Write a Review

Econometrics Questions & Answers

  What are firms profits if charged for product x and y

You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. in particular, you know there are three types of consumers ( 1,000 of each type) w..

  Estimate a sixth point to be the optimal consumption point

Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.

  What is the steady state level of capital per worker

Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..

  Why the double declining balance method is used

The Acme chemical company paid $45000 for research equipment, which it believes will have zero salvage value at the end of its 5 year life. If the straight line (SL) method is used, what will be its value after 2 years What will be its value after 2 ..

  Determine how much food to grow

During the last 5 years, there has been an increase in the amount food that people are growing in their gardens. Use marginal cost- benefit analysis and the concept of opportunity cost, explain what could have changed the choice.

  The nation of ectenia has 20 competitive apple orchards

the nation of ectenia has 20 competitive apple orchards which sell apples at the world price of 2. the following

  Derive the demand and supply curves

Given the following Demand and Supply functions answer questions a thru d. Qd=120-2P+5I Qs=-10+4P-3W where P=$3 is the price of the good. I=$100 per capital consumer income W= $50 wage rate a. Derive the demand and supply curves (qd and qs).

  What can be deduce about toms marginal utility

How can I set this question up as an equation Each week, Tom Wu buys two hamburgers at $2 each, eight cokes at $0.50 each, and eight slices of Pizza at $1 each, but he buys no hot-dogs at $1.50 each. What can you deduce about Tom's marginal utilit..

  Calculate the elasticity of demand betwen two prices

When the price of squiggles is $700, 2200 units are demaded. When the price per unit of squiggles is $300, 4200 units of squiggles are demanded. 1) Use these two points and calculate the estimated demand function.

  What rate return will the man receive

A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive

  Which of the options maximizes the revenues

Customer Group B is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate but can bundle the products or sell them separate, which of the options below maximizes its revenues

  How much l is needed to produce 100 frisbees per hour

Frisbees are produced according to the production function q = 2K+L where q =output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour

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!

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