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 $100 thousand to file the paperwork necessary to start a firm. The new equilibrium number of entrepreneurs is N=....... thousand. (Round your response to two decimal places.)
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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Suppose the return and cost of entrepreneurship curves are described by the following equations (with numbers measured in the thousands):
R=1,100−100N
C=100+150N,
where R=returns to entrepreneurship, C=cost of entrepreneurship, and N=number of entrepreneurs.
The equilibrium number of entrepreneurs is
N=...... thousand.
(Round your response to two decimal places.)
The equilibrium returns to entrepreneurship is
R=$..... 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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