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.
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 […]