Assume that the MBA education industry is constant- cost and is in long-run equilibrium. 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 for a representative school as well as for the market as a whole.
Answer to relevant QuestionsHow would each of the following phenomena affect the long-run supply curve of apples? a. Workers in the apple industry form a union. b. Consumers find out that apples cause cancer. c. Hard-to-control bugs that eat apples ...Can all schools in the MBA education market face constant returns to firm scale and yet the industry has an upward-sloping long- run supply curve? If the MBA education industry is constant- cost, what, if anything, does this ...Suppose that the low-skill job market is perfectly competitive and that the equilibrium wage and monthly output in the market absent government interference are $ 4.50 per hour and 1,000,000 hours, respectively. Assume that ...Using a pair of graphs like those in Figure 10.10, illustrate a situation in which the United States would be an exporter of the good in question, and identify the equilibrium.The prices of seats on major financial exchanges have plummeted dramatically in recent years. For example, at the Chicago Board of Trade, the world’s biggest futures exchange, a membership seat sold for $ 300,000 in 2012, ...
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