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The figure on the right illustrates the returns to entrepreneurship and the costs of entrepreneurship. The market is initially in equilibrium at point E1. Suppose
The figure on the right illustrates the returns to entrepreneurship and the costs of entrepreneurship. The market is initially in equilibrium at point E1. Suppose a country's economic institutions make entry barriers for entrepreneurial activities less expensive. Show the effect of lower entrepreneurial entry barriers on the graph. 1.) Using the line drawing tool, graph either a new returnto-entrepreneurship curve (R2). a new costofentrepreneurship curve (CZ)! or both. Label your curve(s) appropriately. 2.) Using the point drawing tool, indicate the new equilibrium. Label your point 'E2.' Carefuiiy foiiow the instructions above and only draw the required object(s). Return to entrepreneurship Number of entrepreneurs
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