Suppose That the Marginal Benefit of Writing a Contract Is

question 44

Multiple Choice

Suppose that the marginal benefit of writing a contract is $100 and the marginal cost of that contract is $100.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 = 100.

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Definitions:

Mortality

The state of being mortal or the rate at which death occurs within a particular population.

Gait Speed

The speed at which a person walks, often used as an indicator of mobility and health in older adults.

Standing Ability

The capability of an individual to maintain an upright posture without assistance.

Swimming Speed

The rate at which an individual or object moves through water.