Question [3]: Just as for consumers, we can use the same trick for aggregation on the firm side. Each firm has discontinuous demand/supply, but in aggregate we will get (hopefully) a nice function. Suppose there is a unit mass of firms (this language means that there are infinitely many firms who are all miniscule and together add to 1; firms are treated like a realization of a continuous random variable, in effect.) . Each firm can only hire zero or one unit of labour /, which has price w. Each firm has a technology indexed by 7 which determines the level of the output good. The technology for a given firm is given by the production function f() = 7/. Suppose that the technology parameter , for the firms is distributed on the interval [0, 4] according toThe technology for tiff is given by the production function f() = / Suppose that the technology parameter y for the firms is distributed on the interval [0, 4] according to f ( 7 ) 2 ify