Yuri has been offered a job with a weekly wage of $800. Yuri declines the offer and starts a tutoring business of his own. He rents a classroom for $200/week. Additional material costs are $5 per student per one-hour tutorial. Tuition is $30 per student per tutorial (regardless of the size of the tutorial class). 3a) What is the weekly accounting profit function for Yuri's business? 3b) What is the weekly economic profit function for his business? 3c) What is the economic breakeven number of tutorial hours per week?

Yuri has been offered a job with a weekly wage of $800. Yuri declines the offer and starts a tutoring business of his own. He rents a classroom for $200/week. Additional material costs are $5 per student per one-hour tutorial. Tuition is $30 per student per tutorial (regardless of the size of the tutorial class). 3a) What is the weekly accounting profit function for Yuri's business? 3b) What is the weekly economic profit function for his business? 3c) What is the economic breakeven number of tutorial hours per week?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter29: Resource Markets

Section: Chapter Questions

Problem 7E

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