To produce one new piece of software, each programmer operates two computers. One programmer can use only two computers at a time. Programmers can't produce without two computers, and computers can't produce without a programmer.

1.1 Write the production function. Graphically, show an isoquant curve to produce into 10, 15 and 20 software packages.

1.2 Assume that programmers cost $25 per hour and renting a computer costs $50 per hour. Plot the isocost lines for $800, $1000, and $1200. Find the minimum cost to produce ten units of software. Derive the long-run cost function.