Problem 4 ('10 points): Suppose a firm's production function is Y = AKyL1_V where: 0 Y is output (assume retail price of output PY = 1 ) L is labor K is capital A is total factor productivity 1/ is an exogenous parameter related to output elasticities a. If the firm's total costs of production are WL + TK where W is the wage paid to unit of labor and r is the rental rate of each unit of capital, What is the firm's labor demand function? Assume flrms maximize prot (TE) i.e._, the difference between total revenue and total costs. Put a box around your answer. (5 points) b. E-Xplain in words (use economic intuition, don't just explain the math) why the firm's labor demand function puts an upper limit on a worker's wages at the margin, regardless of whether wages are determined in a perfectly competitive, C SE, or Nash Bargaining environment. (5 points)