Suppose the return and cost of entrepreneurship curves are described by the following equations(with numbers measured in the thousands):R=800-50 N,C=100+150 N, where R=returns to entrepreneurship,C =cost of entrepreneurship, and N=number of entrepreneurs.Based on the equations given, the cost-of-entrepreneurship curve differs from the one drawn in the chapter because it is____________.
A.horizontal, indicating a constant marginal cost of entrepreneurship as the number of entrepreneurs increases.
B.downward-sloping, indicating economies of scale as the number of entrepreneurs increases.
C.upward-sloping, indicating specialization as the number of entrepreneurs increases.
D.upward-sloping, indicating the opportunity cost of entrepreneurship increases with the 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.)