1. (POINTS: 35) Consider a firm with the following production function: F(K, L) = VKL This firm's acts competitively, and the prices are w for 1 unit of labor hired, r for 1 unit of capital rented, p for 1 unit of output sold. (a) (Points: 3) Set this firm's cost minimization problem, assuming it needs to produce at least q units of output. Answer: (b) (Points: 7) Derive the long run capital and labor choices for this firm. Answer:(c) (Points: 3) What is the firm's minimized cost function? Answer: (d) (Points: 2) If the minimal level of output to be produced were to increase, what would happen with the firm's cost (assume there is no change in the input prices). Derive an equation that can captures that, than explain the intuition. Answer:{e} {Points: 2} Set up this rm's general prot maximization setup. Answer: if} (Points: 3] Solve the prot maximization problem for this rm using the twostep approach {maximization over quantity}. Note. start by clearly identifying howr you modify the general prot maximization setup above before solving the