Please be detailed in answering

Question 3: Understanding the Impact of Distortions Recall the distorted model from lecture where firms have the wage they pay distorted by Ti = 311?. Let's suppose this distortion arises from a financial market imperfection (we'll consider how such imperfections arise in coming lectures). Make all the same assumptions that we made in lecture. a. Assume, as before, that the distribution of managerial talent is A;- ~ U[0,1]. Assume we are holding the supply of labor fixed at I; Lgdi = L. Derive the probability density of the sizes of the firms in the economy (that is, derive the PDF of Li, the number of employees hired]. Draw the PDF for a high and a low value of qb (keeping in mind that%