1. Last year, your company purchased a site license to the accounting software suite CookTheBooks-E for $13,000. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter, for $11000. How should your company assess or quantify the cost of the decision to replace its software? The BeanCounter software includes a monthly fee of $125 per site license (i.e., the fee to the company is $125 per month regardless of the number of computers on which the software is installed or how often it is used}; how would re company characterize this cost (in terms of the concepts we've discussed this week)? 2. You have collected the following data on output and total variable costs: TVC (33} 24,450 39,600 48,150 52,000 .0 01,200 01,350 00,400 112,050 150,000 a. Identify die range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns {decreasing MP). b. Current fixed cosE for the company equal $14,300. Draw two graphs, both with Q on the horizoan axis: one graph shows TVC and TC, and the other shows AVE, AC, and MC. c. Suppose that the government imposes a $11,500 property tax hike on all businesses; how will that affect your two graphs; i.e., which cost curves will be affected and how? :21. Suppose instead that the government considers your production process to be polluting, and imposes a $210 tax per unit produced [replacing the property tax in the previous question}. How does this tax increase compare to the property tax increase, in terms of the effect on your company's cost curves? e. Your boss says "either of these taxes is going to force us to change our production levels." Given what you know about optimization analysis, how would you respond? w 3. You are HR director for a growing architecture firm in New Haven, Connecticut, which currently has need of drafting 36 blueprints every hour. Each of your company's architects can create on average three blueprints per hour. You are considering hiring six drafters to The LSUS School of Business considers course information to be proprietary to the professor of the course. Violating this intellectual property protection by scanning, copying, website posting, or reproducing and sharing course information is considered an infraction of the MBA Honor lCode and LSUS Code of Student Conduct