Andrew has decided to open an online store that sells home and garden products. after searching around, he chooses the software company initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. they agreed upon price of $6,000. to use initech’s software, andrew makes $1,800 in sunk capital investments and spends 45 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 $30 per hour and initech is fully aware of the investments andrew must make to use their product. after andrew’s investments were made, initech came to andrew and asked for more money. how much do you think they asked for?

Following is a list of various costs incurred in producing replacement automobile parts. with respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. oil used in manufacturing equipment 2. plastic 3. property taxes, $165,000 per year on factory building and equipment 4. salary of plant manager 5. cost of labor for hourly workers 6. packaging 7. factory cleaning costs, $6,000 per month 8. metal 9. rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. straight-line depreciation on the production equipment 12. hourly wages of machine operators 13. electricity costs, $0.20 per kilowatt-hour 14. computer chip (purchased from a vendor) 15. pension cost, $1.00 per employee hour on the job

Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.

Experienced problem solvers always consider both the value and units of their answer to a problem. why?