Question #1 Profit Maximizing Inputs in the Short Run The table below displays daily production information for a firm that uses capital and labor inputs to produce its output. The firm sells each unit of output at a price of $20. The firm pays each worker a daily wage of $25 and the daily rental rate for each machine is $150. Assume that these are the only two inputs used by this firm. K - Machines QTotal Product a. How do we know that this firm is operating in the short run? b. Over what range of output does the firm experience increasing marginal returns to capital? For what range are marginal returns to capital diminishing? c. How many machines should the firm use to maximize its profit in the short run? d. How much profit does this firm earn in the short run