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+150​N,   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
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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+150​N,
 
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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