" ( p, r, W). Question [2): Just as for consumers, we can use the same trick on the firm side. Each firm has discontinuous demand/supply, but in aggregate we will get 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 I, which has price w. Each firm has a technology indexed by y which determines the level of the output good. The technology for a given firm is y = y. Suppose that the technology parameter y for the firms is distributed uniformly on the interval [0, 4). The output y has price p. Firms are profit maximizers. What is aggregate demand for labour? What is aggregate supply of output? (Careful, her the level of output varies for those firms that produce! So this is 'more complicated' than the previous part, where the level of labour was 1 for all firms that produce!)