What will be the optimal length of contract

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1. If a firm manager has a base salary of $50,000 and also gets 2 percent of all profits, how much will his/her income be if revenues are $8,000,000 and profits are $2.000,000?

2. The marginal cost of writing a contract of length L is MC(L) -20+SL. What will be the optimal length of a contract when the marginal benefit of writing the contract is MBL)-180?

Reference no: EM131788806

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