Microenterprises account for an important part of the economic activity of sub-Saharan Africa. Yet the small size, informal structure, and remote location of many microenterprises have hampered support programs from helping them realize their full economic potential. This report describes a...

When the labor supply schedule is bending forward at low wage levels, the average cost curve of firms does the same. This leads to the possibility of multiple equilibria, in particular for monopolists, thereby opening a broader range of options and keeping non‐profitable firms in business....