Wenbo is a local carpenter who makes tables. His production function for the number of tables he produces is l l f(x1, xz) = x15 x; where x1 is the amount of labour and x2 is the amount of wood he uses. His tables sell for $40 per unit. Labour costs $20 per unit and wood costs $10 per unit. That is, the variable cost to production is 20x1 + 10x2. There is also an additional fixed cost for his workshop of $10 that needs to be paid regardless of whether any output is produced. What is the profit-maximizing amount of each input to use? How much does the firm produce when it is profit- maximizing? How much profit does the firm make? The government introduces a new tax of 10% profits. What is the after tax profit function? How much of each input does the firm use? How much profit does the firm make after tax? Instead of introducing the profit tax in (d), the government decides to add an ad valorem input tax of 10% to input 2. What is the profitmaximizing amount of each input to use? How much does the firm produce when it is profit- maximizing'? How much profit does the firm make