a. Do you expect other firms to enter the market for singing lessons and compete with Lorie?

b. What happens to the demand for Lorie’s lessons in the long run? What happens to Lorie’s economic profit in the long run?

Lorie teaches singing. Her fixed costs are $1,000 a month, and it costs her $50 of labor to give one class.
The table shows the demand schedule for Lorie’s singing lessons.

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Price (dollars per lesson) 0 50 100 150 200 250 Quantity demanded (lessons per month) 250 200 150 100 50 0