 Solution

Throughout the algebraic questions, $C$ is a smooth projective connected algebraic curve over the algebraically closed field $k$. This is the curve convention needed for the Jacobian variety; for an arbitrary singular or nonproper curve the assertions need not hold. Choose $P_0\in C(k)$ and write $\pi :C\times T\to T$.

The degree-$d$ Picard functor of a curve iswith pullback as its action on morphisms. Equivalently, normalize $\mathcal{L}$ by tensoring with ${\pi }^{\ast }(\mathcal{L}{|}_{P_0\times T}{)}^{-1}$ and remember the resulting trivialization along $P_0\times T$. Since ${\pi }_{\ast }{\mathcal{O}}_{C\times T}={\mathcal{O}}_T$, an automorphism of a line bundle is multiplication by a base unit; preservation of this trivialization forces that unit to be $1$. Thus normalized line bundles have effective descent and the displayed functor is already the appropriate sheaf, rather than just a list of classes over fields.

Here is a construction of its representing scheme. The symmetric product of a curve $C^{(r)}$ represents relative effective degree-$r$ Cartier divisors. It is projective, and its completed local ring at $\sum m_i{Q}_i$ is a power-series ring in the elementary symmetric coefficients of $m_i$ local parameters at each $Q_i$. Thus it is smooth of dimension $r$, in every characteristic. PutThis is open by the semicontinuity theorem for coherent cohomology. It is nonempty: choose $g$ points successively imposing independent vanishing conditions on $H^0(C,K_C)$, so that $H^0(C,K_C-D)=0$, and use Serre duality. The Riemann-Roch theorem gives $h^0({\mathcal{O}}_C(D))=1$ on $U$.

For any fixed line bundle $B$ of degree $g-d$, use a copy $U_B$ of $U$ with the universal normalized line bundle $\mathcal{O}(D)\otimes B^{-1}$. This represents exactly the open subfunctor on which $H^1({\mathcal{L}}_t\otimes B)=0$. Indeed, cohomology and base change for line bundles on a curve makes ${\pi }_{\ast }(\mathcal{L}\otimes B)$ a rank-one vector bundle. The evaluation morphismhas a unique relative zero Cartier divisor of degree $g$ and recovers the point of $U_B$. No choice of a global generator on $T$ is needed. Conversely that zero Cartier divisor recovers $\mathcal{L}$ modulo a bundle from $T$.

These charts cover: given any degree-$d$ line bundle $L$, choose a nonspecial effective degree-$g$ Cartier divisor $D$ and take $B=\mathcal{O}(D)\otimes L^{-1}$. On the overlap of $U_B$ and $U_{B^{\prime }}$, the unique effective representative of $\mathcal{O}(D)\otimes B^{-1}\otimes B^{\prime }$ is constructed by the same rank-one evaluation map. It therefore gives a regular transition morphism; uniqueness gives both the inverse and the cocycle identity. Gluing gives a scheme $J^d$ representing ${\mathcal{P}}^d$, with a universal normalized line bundle.

The construction is of finite type, not an infinite union of indispensable charts. Choose $m\ge 2g-1$ and a fixed line bundle $F$ of degree $m-d$. Every $L\otimes F$ has a nonzero section by the Riemann-Roch theorem, so the universal effective Cartier divisor gives a surjection $C^{(m)}\to J^d$. The inverse images of the charts cover the projective, hence quasi-compact, symmetric product of a curve $C^{(m)}$. A finite subcover gives finitely many charts for $J^d$. This surjection also makes $J^d$ irreducible. The charts show that it is smooth of dimension $g$.

For properness, apply the valuative criterion for properness. Let $R$ be a discrete valuation $k$-algebra with fraction field $K$, and let $L_K$ be a degree-$d$ line bundle on $C_K$. A rational section represents it by a Cartier divisor. Its closure in the regular surface $C_R$ is again a Cartier divisor, since regular local rings are factorial. Thus $L_K$ extends to a line bundle on $C_R$, whose fibre degree remains $d$ by constancy of line bundle degree in a family. Two extensions with the same generic class differ by a vertical Cartier divisor. The special fibre is irreducible, so that Cartier divisor is an integer multiple of the entire fibre, the principal Cartier divisor of a power of a uniformizer. The extensions therefore give the same normalized Picard class. This proves existence and uniqueness in the valuative criterion, hence separatedness and properness of the finite-type scheme $J^d$.

Consequently ${\mathrm{Pic}}_C^d={\mathrm{Jac}}_C^d$ is a smooth proper $k$-variety of dimension $g$. Tensoring by ${\mathcal{O}}_C(-d{P}_0)$ identifies it with $J^0$. On $J^0$ the tensor product and inverse of line bundles induce the algebraic group operations; it is the Jacobian variety, an abelian variety.