Question
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
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 $800 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 thatL=Y2whereYis the number of years for the contract.
If HomeGrown's lawyers charge $100 per hour, how long should the contract be?
Instruction:Enter your response rounded to one decimal place.
years
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