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5. {16 points) Pointy-Haired Incorporated (PHI) is a firm producing business software with two types of software engineers: Dilberts and Wallys. The number of software

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5. {16 points) Pointy-Haired Incorporated (PHI) is a firm producing business software with two types of software engineers: Dilberts and Wallys. The number of software packages the firm can produce per year is FiD,W|=3D+w , where D and W stand respectively for the number of Dilberts and Wallys. Suppose the salaries of Dilberts and Wallys are respectively SD: $ 50,000 {year and s,,=$40,000 fyear. a. Draw two isoquants with output levels being 6 and 9 respectively. Label the axes and mark clearly the intercepts. b. Does the technology of PHI exhibit decreasing, constant, or increasing returns to scale? c. Now, suppose in the short run, the number of Dilberts is fixed at 1. What is the minimum cost of producing 9 software packages a year? d. In the long run, what is the minimum cost of producing 9 software packages a year? How many of each type of engineers are hired? Illustrate your solution graphically

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