Question 3: (12 points) Consider the model of firm choice we developed in Chapter 4. The representative firm combines capital K and labour / to produce the physical consumption good according to the production technology given by Y = zKoNl a (1) where a E (0, 1) is the capital share, Y is the total output, > > 0 is total factor productivity, and N is the labour demand of the firm. The workers are paid the real wage rate w by the firm. Different from the baseline model, the firm also receives a lump-sum transfer T' > 0 from the government because it uses clean technology. Draw a diagram with revenue plus transfers on the vertical axis, and labour demand / on the horizontal axis. Mark the optimal labour demand N*, and the implied revenue plus transfers Y* + T. What is the technical name of the slope of this curve? What is its value equal to at the optimal quantity? Show the optimal profits of the firm a* on the diagram. Label everything