Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses with their profit increasing by $2.5 million each year for the next 5 years (all other things equal). Indi and Indrani decidea) to open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million). b) to open an Austin office because the marginal cost of the new office is low compared to other similar projects. c) to not open a new office because the marginal costs prove to be too high.

Answer for the question:

Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses with their profit increasing by $2.5 million each year for the next 5 years (all other things equal). Indi and Indrani decidea) to open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million). b) to open an Austin office because the marginal cost of the new office is low compared to other similar projects. c) to not open a new office because the marginal costs prove to be too high.

Is given in the attachment.

Explanation:

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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