Suppose that a monopoly farmer of Wonder Grain must pay all of its costs of production in this year but that it must wait until next year to sell its output. Why would the farm's profit-maximizing output be the level for which MR = MC(1 + r)? Explain why this profit-maximizing condition takes all costs into account. How would this farmer change his or her output decision if the interest rate rose? Explain your result intuitively. Explain also why the firm should also hire any input, such as labor, up to the point at which MRPL = w(1 + r).