Acme Products is a small manufacturer competing in a perfectly competitive market. It can sell all of the product it chooses to produce at $425 (P = $41.25).Acme's production function is Cobb-Douglas where the daily production Q = 10 x K^1/2x L^1/2.Acme pays a daily wage (w) of $200 per worker and pays $50 (P_K) per unit of capital (K).Note: This task is mostly easily completed with MS Excel.The table can be copied and pasted into Excel with the completed table pasted back into this document.

a.Complete Acme's production table.

b.At what level of daily production is the Value of the Marginal Product of Labor (VMP_L) equal to the daily wage?

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c.How many daily workers should Acme hire?

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d.What is the maximum profit?

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e.At what level of daily production is marginal cost equal to marginal revenue?

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f.What is the profit-maximizing daily production (Q)?

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g.Does this production table show the short run or the long run?How can you tell?

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\f