Use the Following to Answer Questions

question 303

Essay

Use the following to answer questions:
-(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. Eric can offer additional hours of tutoring at a constant marginal cost of $2 per hour, and he has no fixed costs.
A) If Eric acts as a monopolist, how many hours will he offer and what price will he charge?
B) Calculate Eric's monopoly profit.

• A) If Eric acts as a monopolist, how many hours will he offer and what price will he charge?
• B) Calculate Eric's monopoly profit.

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Definitions:

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Cooked beef that has been processed or modified to remove excess liquid or fibers, often for dietary or culinary purposes.

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A measure that ranks foods according to their impact on blood glucose levels.

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A chronic condition where the body either resists the effects of insulin or doesn't produce enough insulin to maintain normal glucose levels.