2111mm N3) = 2T /KT '/N3 (1' = 0, 1), where at is the total factor productivity, KT is the capital and N: is the labor demand in each period. Denoting gross investment by ID, interest rate by r and depreciation rate by d, write the firm's in- tertemporal prot maximization problem. 2. ** a K1 is detrimental to the firm in period 0; i.e., % = 1. Why wouldn't the firm simply 1 set K1 = O to avoid reduction in 11:0