Problem 4. Firms, Profit Maximization, and Economic Profits (25 points). Consider a static (i.e., one period) framework of firms. The representative firm's profits are profit: kanl-a , in which (as per the definitions and notation in Chapter 6) n stands for labor, k stands for physical capital, w is the real wage, r stands for the real interest rate, and kn' is the Cobb-Douglas goods production function, and a e (O, l) (which is an exogenous parameter) measures the share of physical capital in the goods production function f (k, n) = en I-a For the analysis below, keep in mind that the marginal product with respect to labor (denoted as mpn ) is mpn = (1 a) and the marginal product with respect to capital (denoted as mpk ) k is mpk = a. b. (3 points) Based on the profit function stated above, compute the first-order condition with respect to n. (3 points) Based on the profit function stated above, compute the first-order condition with respect to k .