"Determine which production process the firm will choose as a function of the rental price of capital r" The rental price of capita r is a variable, and it will be a function of the parameters of the model. So, it is the value of r relative to the parameters that will determine your answer.A firm produces output 1; using two factors of production [inputs], laioour L and capital it. It is considering whether to use one of two production processes. Production process A has the 1 1 production function fAIIL, K) = oLEKi. Production process B has the production function fBifL, K] = 1613K i The wage rate w = 1 and the rental price of capital is r. The input markets are competitive, so w and r are taken as parameters [xed]: by the firm. As aiwavs, we assume firms want to maximize prots. Determine which production process the firm Win choose as a function of the rentai price of capital r. [12 marks