Last year, your company purchased a site license to the accounting software suite CookTheBooks for $13,000. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter, for $17,000. 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 the company characterize this cost (in terms of the concepts we've discussed this week i.e., production function and production isoquants)?