Suppose the return and cost of entrepreneurship curves are described by the following equations (with numbers measured in the thousands): R=1,100−100N C=100+150N, where R=returns to entrepreneurship, C=cost of entrepreneurship, and N=number of entrepreneurs. The equilibrium number of entrepreneurs is N=...... thousand. (Round your response to two decimal places.) The equilibrium returns to entrepreneurship is R=$..... thousand. (Round your response to two decimal places.) The government enacts a license fee of $100 thousand to file the paperwork necessary to start a firm. The new equilibrium number of entrepreneurs is N=....... thousand. (Round your response to two decimal places.)
Suppose the return and cost of entrepreneurship curves are described by the following equations (with numbers measured in the thousands): R=1,100−100N C=100+150N, where R=returns to entrepreneurship, C=cost of entrepreneurship, and N=number of entrepreneurs. The equilibrium number of entrepreneurs is N=...... thousand. (Round your response to two decimal places.) The equilibrium returns to entrepreneurship is R=$..... thousand. (Round your response to two decimal places.) The government enacts a license fee of $100 thousand to file the paperwork necessary to start a firm. The new equilibrium number of entrepreneurs is N=....... thousand. (Round your response to two decimal places.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 3E
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Suppose the return and cost of entrepreneurship curves are described by the following equations (with numbers measured in the thousands):
R=1,100−100N
C=100+150N,
where R=returns to entrepreneurship, C=cost of entrepreneurship, and N=number of entrepreneurs.
The equilibrium number of entrepreneurs is
N=...... thousand.
(Round your response to two decimal places.)
The equilibrium returns to entrepreneurship is
R=$..... thousand.
(Round your response to two decimal places.)
The government enacts a license fee of $100 thousand to file the paperwork necessary to start a firm.
The new equilibrium number of entrepreneurs is N=....... thousand.
(Round your response to two decimal places.)
The new equilibrium returns to entrepreneurship is
R=$...... thousand.
(Round your response to two decimal places.)
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