3. Consider a profit-maximizing firm that produces a single output good using labor and capital. (a) Explain why firm profits are (typically) weakly increasing in the variance of the wage rate (i.e., the firm would typically prefer a mean-preserving spread such that the wage rate is low in some periods and high in others). Does this imply that expected firm profits are also increasing in the variance of the output price if production decisions must be made before the output price is known