There are a lot of learning and tutoring centers in Hong Kong, focusing on training the students' academic study, language, arts, music, sports, etc. Size of the firms varies a lot in the tutoring industry. Besides, it is common to see that there are a lot of learning centers within the same building.

1. To what extent is the market for learning or tutoring centers perfectly competitive? Is there any market power for the firms in tutoring centers? Provide one real example (with brief introduction of this center), and identify and explainTHREEsources of market power that this firm obtains.

2. As mentioned in the scenario, size of firms varies a lot in the tutoring industry. Explain this phenomenon.

3. Explain principal-agent problem. Identify and explain TWO possible principle-agent problems at two different organisational levels that it could encounter in the learning or tutoring centers. Explain how the centers could be adversely affected by two identified principal-agent problems. Suggest and explain TWO possible solutions for each of the identified problems

4. There are many pricing strategies used in tutoring or learning centers. ProvideTHREEreal examples in learning or tutoring centers in Hong Kong with relevant concrete details, including observation date and place. Speculate on why it was adopted for the particular example you have chosen.