1. Acme Products is a small manufacturer competing in a perfectly competitive market. It can sell as much of its product as it chooses to produce at $40.50 (P = $40.50).Acme's production function is Cobb-Douglas where the daily production Q = 10 x K^1/2 x L^1/2.Acme pays a daily wage (w) of $270 per worker and pays $60 (P_K) per unit of capital (K). Note: This task is most easily completed with MS Excel. The table can be copied and pasted into Excel with the completed table pasted back into this document.

	Q=10*K^.5*L^.5	Q/L	MP*P	K*Pk	L*w	FC + VC	P*Q	TC/Q	TR/Q	TR - TC
K	L/day	Q/day	MPL	VMPL	FC	VC	TC	TR	MC	MR	Profit
16	2
16	4
16	6
16	8
16	10
16	12
16	14
16	16
16	18
16	20
16	22
16	24