Discuss what long-run equilibrium means
Assume that the MBA education industry is constant-cost and
is in long-run equilibrium. Discuss what long-run equilibrium means. Market demand
increases, but due to strict accreditation standards, new firms are not
permitted to enter the market. Explain the nature of
the original long-run
equilibrium then 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 analysis how your
analysis change if MBA’s are produced in an increasing cost industry. Page
limit, one page and one page for supporting graphs.