please answer Q 24 and 25

24. Andrew has decided to open an online store tltat sells home and garden products. After 25. searching around, he chooses the software company Initech to provide the software for his website since its product required the least amount of specialized investments for him to use it. They agreed upon a price of $3,000. To use Initech's software, Andrew makes $1.000 in sunk capital investments and spends 40 hours learning how to use Initech's software, which is very different from other software packages. Both Andrew and Initech view Andrew's time as worth $25 per hour, and Initech is fully aware of the investments Andrew must make to use its product. After Andrew's investments were made, Initech came to Andrew and asked for more money. How much do you think its asked for? (L02) HomeGrown is a small restaurant that specializes in serving local fruits, vegeta- bles, and meats. The company has chosen to enter into a longterm relationship with Family Farms, a local farming operation. The twa parties have decided to enter into a longterm contract, where Family Farms will supply produce to HomeGrown at spec ified 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 $1,000 in bargaining and opportunism costs. However, each year the contract covers also requires more legal fees. HomeGrown estimates that the number of hours required from lawyers, L, has .a quadratic relationship with the num ber of years on the contract, so that L = Y2, where Y is the number of years for the contract. lfl-IomeGrown's lawyers charge $100 per hour, how long should the con- tract be? (L03)