1. Suppose a new piece of computer software can be created for a onetime cost of $100 million. Suppose that once it's created, copies of the software can be distributed at a cost of $1 each. (a) If Y denotes the number of copies of the computer program produced and X denotes the amount spent on production, what is the production function? (b) Make a graph of this production Jnction. Does it exhibit increasing returns? Explain. (c) Suppose the rm charges a price equal to marginal cost ($1) and sells a million copies of the software. What are its prots? ((1) Suppose the rm charges a price of $20. How many copies does it have to sell in order to break even? What if the price is $100 per copy? (e) Why does the scale of the market (the number of copies the rm could sell) matter