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Suppose Eric is the only economics tutor in town. Eric can offer additional hours of tutoring at a constant marginal cost of $2 per hour,
Suppose Eric is the only economics tutor in town. 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?
Table: Demand for Economic-5 Tutoring Quantitj' of Price.- of Economics Tutoring Economics Tutoring Demanded (hours) (per hour) 0 $6 5 2 4 3 3 4 2 5 l 6 DStep by Step Solution
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