Question
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
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 its product required the least amount of specialized investment for him to use it. They agreed upon a price of $2,000. To use Initech's software, Andrew makes $1,200 in sunk capital investment and spends 55 hours learning how to use Initech's software, which is very different from other software packages. Booth Andrew and Initech view Andrew's time as worth $26 per hour, and Initech is fully aware of the investment Andrew must make to use its product. After Andrew's investment were made, Initech came to Andrew and asked for more money. How much do you think its asked for and why?
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