Problem 4 (10 points): Suppose a rm's production function is Y = AKWPV where: o lr' is output {assume retail price of output Py = 1 j o L is labor 0 K is capital 0 A is total factor productivity o y is an exogenous parameter related to output elasticities a. If the fnni's total costs of production are wL + \":1? where w is the wage paid to unit of labor and T is the rental rate of each unit of capital. what is the fnm's labor demand function'.l Assume rms maximize prot (It) i.e.. the difference between total revenue and total costs. Put a box around your answer. (5 points) b. Explain 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. CSE. or Nash Bargaining environment. (5 points)