Question: ( 2 0 pts ) Consider a central authority who operates J firms with differentiable convex cost functions c j ( q j ) for

(20 pts) Consider a central authority who operates J firms with differentiable convex cost functions cj(qj) for producing good l from the numeraire. Define C(q) to be the central authority's minimized cost level for producing aggregate quantity q; that is,
C(q)=minq1,dots,qJ0j=1Jcj(qj),s.t.,j=1Jqjq
(a)(10 pts) Derive the first-order conditions for this cost-minimization problem.
(b)(5 pts) Show that at the cost-minimizing production allocation (q1**,dots,qJ**),C'(q)=cj'(qj**) for all j with qj**>0(i.e., the central authority's marginal cost at aggregate output level q equals each firm's marginal cost level at the optimal production allocation for producing q).
(c)(5 pts) Show that if firms all maximize profit facing output price p=C'(q)(with the price of the numeraire equal to 1), then the consequent output choices result in an aggregate output of q. Conclude that C'(*) is the inverse of the industry supply function q(*).
( 2 0 pts ) Consider a central authority who

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