Assume that the MBA education industry is constant-cost and is in long-run equilibrium. Discuss what long-run equilibrium means. Demand increases, but due to strict accreditation standards, new firms are not permitted to enter the market.
Analyze the determination of a new long-run equilibrium, showing the effects with the aid of graphs for a representative school as well as for the market as a whole.
Explain with a compare/contrast one paragraph analysis how your analysis change if MBA’s are produced in an increasing cost industry. Page limit, one page and on page for supporting graphs.
