Question 1 [20 points] Consider a monopolist with the following relationship between output and price; P : D(Q) : ln(aQ), (1) and the following production function; f(K, L) : AKL. (2) Note: Q is output, L is labor employed, K is capital stock, a and A are constants. (Hint: emf\")? = f(m)) [5 points] Write the short run prot maximization problem and the necessary condition for an optimal solution. [5 points] How much labor does the rm demand? What is output for this level of labor? What is the price of goods? [5 points] What is the relationship between the VMPL and wages (in terms of size)? How does this compare to the competitive case? Why? [5 points] What is the elasticity of labor with respect to the wage? What is the elasticity of labor with respect to rental rate of capital