Suppose a New Contracting Environment That Requires Clearing Fewer Legal

question 105

Multiple Choice

Suppose a new contracting environment that requires clearing fewer legal hurdles is considered.This new contract will result in:

• A) an increase in the marginal cost and a longer optimal contract.
• B) an increase in the marginal cost and a shorter optimal contract.
• C) a decrease in the marginal cost and a longer optimal contract.
• D) a decrease in the marginal cost and a shorter optimal contract.

---

Definitions:

Sampling Distribution

A statistical distribution that represents the frequency of various outcomes in a set of samples drawn from a larger population.

Standard Deviation

A measurement of the dispersion or variation of a set of values, indicating how much the values deviate from the mean of the set.

Sampling Distribution

The pattern of likelihood for a particular statistic that originates from a random sample.

Standard Deviation

An indicator of the degree of spread or variability among a collection of figures, showing how far the values diverge from the average.