Use the Following to Answer Questions

question 194

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. 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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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s which brought about significant changes in agriculture, manufacturing, mining, transportation, and technology, profoundly affecting social, economic, and cultural conditions.

Manufactured Goods

Products that have been produced from raw materials through various processes in factories, ranging from electronics to clothing.

Handwork

Manual or skilled labor involving the use of the hands and tools rather than machinery, often associated with crafts, artisanal production, and traditional techniques.