Consider a single-market analysis of welfare (with production). We use the notation q,- to denote consumer i's demand for good 1, and qj be firm J's supply of good 1. There are 500 consumers. Let mi be the income of a particular consumer i . The income of the 500 consumers are distributed evenly in (0, 1). The utility of all consumers are the same. For consumer i , his utility is: M'szi The price of good 1 is denoted by p and that the price of good 2 is normalized to l. The demand of Good 2 by consumer i is denoted by xZi. Hint: MRS;- = qim There are 1000 firms producing Good 1 and they are identical. Firm j has a cost function: Cj(1j) = '51,2