Refer to the Figure Below

question 136

Multiple Choice

Refer to the figure below. Suppose that the marginal benefit of writing a contract is $100 and the marginal cost of that contract is $150. 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 = 150.

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Definitions:

Analytical Intelligence

The ability to analyze, evaluate, critique, and logically reason through problems and situations.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a commonly used test for assessing adult and adolescent intelligence.

WISC-IV

An abbreviation for the Wechsler Intelligence Scale for Children - Fourth Edition, a widely used test designed to measure the intelligence of children ages 6 to 16.

Creativity

The capacity to generate unique and novel concepts, or to create something innovative or creative.