Essay
(Table: Demand for Economics Tutoring) Look at the table Demand for Economics Tutoring.Suppose Eric is the only economics tutor in town and therefore holds a monopoly on the sale of economics tutoring.The table shows the demand schedule for his services.Eric can offer additional hours of tutoring at a constant marginal cost of $2 per hour, and he has no fixed costs.Suppose Eric can perfectly price-discriminate by charging his customers exactly their willingness to pay.How many hours will he offer, and how much profit will he earn by price- discriminating?
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He will offer hours until P = MC ...View Answer
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Correct Answer:
Verified
He will offer hours until P = MC ...
View Answer
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