What is the optimal length of a contract

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Reference no: EM13148450

On contracts and transactions costs. The marginal benefits of a contract the Weyer Corporation could make with the Steuben Company for brackets that are used in producing industrial windows is $556 per bracket per month while the marginal cost of such a contract is MC= 300 + L^2 per bracket, with L being contact length in months. What is the optimal length of a contract , L, which Weyer could make with steuben? Derive and explain your answer.

Reference no: EM13148450

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