Small restaurant that specializes in serving local fruits

Assignment Help Business Economics
Reference no: EM131165361

HomeGrown is a small restaurant that specializes in serving local fruits, vegetables and meats. The company has chosen to enter into a long-term relationship with Family Farms, a local farming operation. The two parties have decided to enter into a long-term contract where Family Farms will supply produce to HomeGrown at specified prices and volume each year. Before signing a contract, HomeGrown is trying to decide how long the contract should be. It estimates that each year the contract covers saves the restaurant $2,000 in bargaining and opportunism costs. However, each year the contract covers also requires more legal fees. HomeGrown estimates that the number of hours it will need from lawyers, L, has a quadratic relationship with the number of years on the contract so that L = Y2 where Y is the number of years for the contract. If HomeGrown’s lawyers charge $120 per hour, how long should the contract be?

Instruction: Round your answer to 1 decimal place.

Reference no: EM131165361

Four-wheel-drive tractors consisted of five firms

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five

About the financial crisis

California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the ta

About the oil price increase

The problem below asks about the oil price increase from 1973-1980. We have also seen this in 2005 and 2010, although not as dramatic a price increase. During this energy cris

When the marginal cost of writing a contract declines

Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L

The impact of various signs at various sporting venues

A peanut supplier is new to sponsorship and wants to get an outside opinion on the advantages of signage in baseball stadiums. Which company gives advertisers a read on the im

Determine the expected effects on equilibrium price level

What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram in your notes to determine the expected effects on the equili

Planning six-day trip to the national conference

The student chapter of the American Society of Mechanical Engineers is planning a six-day trip to the national conference in Albany, NY. For transportation, the group will ren

What is federal reserve-why does it exist in our economy

What is the Federal Reserve and why does it exist in our economy? What is Monetary Policy and how does it make adjustments to inflation problems? What was QE (Quantitative Eas


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd