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 changes if MBA’s are produced in an increasing cost industry. Page limit, one page and one page for supporting graphs.

Q: The free rider problem arises when a good is O both rival and non-excludable; rival O…

A: Public good refers to the good that non- excludable and non rival in consumption. Free rider problem…

Q: Use the following table to determine the levels of M1 and M2 in the United States. Money Categories…

A: Money- It is used as a form of exchange to carry out transactions. It is a generally accepted medium…

Q: A firm is currently hiring capital and labor so that MPL/PL<MPK/PK, if the firm wishes to maximize…

A: Marginal product of an input is the additional output produced by using additional unit of the input

Q: QUESTION 24 Refer to the information provided in Figure 12.4 below to answer the question(s) that…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: Derive and graph demand curve, marginal revenue, total revenue and price elasticity when given a…

A: The demand curve represents the correlation involving the selling price of an item and the amount…

Q: What is the deadweight loss?

A: Price ceiling is defined as the maximum price that the producer can charge for the product. The…

Q: What is most striking to you in the contemporary development of Mexico?

A: Economic growth is a fundamental aspect of contemporary development in Mexico. The country has…

Q: Compare two alternatives for a security system surrounding a power distribution substation using…

A: Interest rate=10% Two alternatives Condi and Torro are given Annual worth analysis is asked to be…

Q: comparison at an interest rate of 1% per month. to determine which alternative is best First cost, $…

A: Cash flow refers to the movement of money into and out of a business or individual's finances over a…

Q: If an increase in price from $1 to $2 causes a decrease in quantity demanded from 120 to 100,…

A: The midpoint method, also known as the midpoint formula or the arc elasticity, is a technique used…

Q: llion Cash held by public: $300 billion Reserve requirement: 0.10   E) How large would the money…

A: When banks fully utilized their lending capacity, to calculate this we need to check the lending…

Q: The following graph depicts the market for apples from British Columbia, which are sold in units of…

A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…

Q: esult. All assets decline in value by 20 percent of c Installation costs .LOADING... are zero for…

A: Economic lives for an asset refers to the time period when the asset is useful for the owners. The…

Q: ABC Manufacturing has determined that the demand function for their glow-in-the-dark headbands is…

A: Price elasticity of demand shows the responsiveness of demand with 1% change in prices

Q: A firm has the production function q = f(L, K) = L0.5+ K0.5 This firm has: O increasing returns to…

A: The production function exhibits increasing returns to scale if the increase in input by 'm' times…

Q: You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have…

A: The purchase value of the car=28000 Market value decrease by 20% each year Fuel cost=0.0

Q: QUESTION 2 Refer to the information provided in Figure 9.3 below to answer the question(s) that…

A: Cost curves are graphical descriptions of the various costs of production.

Q: Question(4): A power plant is being considered in the dead sea location. For an initial investment…

A: The following question pertains to the evaluation of a power plant investment opportunity in the…

Q: Alex and Mitch are two farmers who grow vegetables on common land. Each farmer gets a benefit from…

A: Alex's Benefit function : sa(60 - sa - sm )  Mitch's Benefit function : sm (60 - sm - sa )  Marginal…

Q: Why does the long run average cost curve decrease and then increase? Give some reasons that the…

A: In the long run, all the factors of production and costs are variable and the firm is able to adjust…

Q: Consider a market where the inverse demand function is P = 100 - Q. All firms in the market have a…

A: The monopoly firm refers to the firm which control entire market and it is price maker. There is no…

Q: 1c. Using Excel or grid paper, based on the above information, plot the demand curve, MR curve, MC…

A: profits = Total Revenue - Total Cost. MR (at Q=2) = TR (at Q=2) - TR (Q =1) MC (at Q=2) = TC (at…

Q: The diagram to the right most likely shows the impact on the Canadian economy of O A. an increase in…

A: In a flexible exchange rate system (also known as a floating exchange rate system), the value of a…

Q: Figure 1 Value of Money 2 1 MS1 MS2 B D Money Demand Quantity of Money 14. Refer to Figure 1. If the…

A: Money demand curve is the downward sloping curve.  Money supply curve is the upward sloping curve.…

Q: Because perfectly competitive firms must accept the ­_________________ curve (demand or supply) for…

A: Perfect competition is a market structure where firms have limited control over the price they…

Q: Evaluate a combined cycle power plant on the basis of the PW method when he MARR is 12% per year.…

A: Present value refers to the financial concept that means the current worth or value of a future…

Q: Suppose there is some hypothetical economy in which households spend $0.50 of each additional dollar…

A: Aggregate demand refers to the total amount of goods and services that households, businesses, and…

Q: Pats D, E, F  Assume that the following data describe the condition of the commercial banking…

A: Given: Total reserves: $80 billion Transactions deposits: $700 billion Cash held by public: $300…

Q: (Figure: Market for Pesticides) In the market for In an effort to reduce the usage of pesticides, a…

A: The equilibrium is established where the demand and supply are equal. The imposition of the tax will…

Q: Your plant has fixed costs of $400,000. If they increase by $20,000 every year for the next 10…

A: EUAC stands for Equivalent Uniform Annual Cost. It is used to evaluate the cost of an investment or…

Q: The JSE tracked firmer global peers on Wednesday as anxiety surrounding the global banking sector…

A: Steinhoff announced late on Tuesday it had a drawn up new restructuring plan in a last- ditch…

Q: I. Price ($) 45 42 II. 39 36 33 30 27 24 21 18 15 12 The graph above demonstrates the domestic…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: 7. When markets fail to allocate resources efficiently, the ultimate source of the problem is…

A: When markets fail to allocate assets correctly, the ultimate source of the problem is often…

Q: Where would you invest your $10,000 to maximize your yield with no foreign exchange risk? in the…

A: When considering investment options, maximizing yield while minimizing risk is a common objective.…

Q: Cost of Reducing Pollution by 1 Unit $10 $20 $40 ove is tabulated the pollution level in tons for…

A: Pollution permits are regulated allowances that allow producers to generate pollution. Tradable…

Q: The JSE tracked firmer global peers on Wednesday as anxiety surrounding the global banking sector…

A: In the AD-AS model, the aggregate demand curve represents the total demand for goods and services in…

Q: -oving a domestic market failure by using a trade-policy measure is an example of O a. the optimum,…

A: Domestic market failures in trade policy mention the requirement of government interference to…

Q: onsider an economy with 2 plants, A and B, whose operations produce emissions. The graphs show the…

A: Externality in economics is defined as the additional cost or benefit that is fallen on a third…

Q: oh to the right illustrates Isabel's preferences for milk cream using indifference curves (1₁, 12,…

A: Utility, in the context of economics, refers to the subjective satisfaction or value that…

Q: You run a small classroom market experiment with only three buyers and three sellers. The…

A: Social surplus, also known as economic surplus or total surplus, refers to the overall benefit or…

Q: compare a perfect competitive and monolpoly market structures

A: Market structure refers to the organizational features that determine a particular market and…

Q: IRM B Produce 30m B: $300m profits A: $50m profits Compete Produce 50m B: $400m profits B: $170m…

A: The dominant strategy is the best course of action no matter what type of strategies are followed by…

Q: Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the…

A: In this question, we are presented with a scenario involving four different products: Alpha, Bravo,…

Q: Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is,…

A: In economics, the equilibrium price and equilibrium quantity refer to the price and quantity at…

Q: If utility is given by U(x, y) = x2 + y2  and px = 2, py = 3, I = 50, this person will choose: a.…

A: The above utility function behaves similar to perfect substitute. Although the marginal utility is…

Q: A company has a Total Cost function where TC = 20Q^2 + 2Q. What is the short run supply curve for…

A: Supply curve shows how much output a firm is willing to supply at a given price.

Q: On January 1, 2012, Albert invested $2,000 at 5 percent interest per year for three years. The CPI…

A: The cost of living is the sum of money necessary for maintaining a particular standard of living,…

Q: Randolph is taking three courses this semester: economics, statistics, and finance. He has decided…

A:

Q: Complete the table with the values of the 3-unit moving average of the given function: bx r(x)…

A: The 3 - point moving average of the function ,  where is  the average value of r(x) on [ x-3, x]

Q: Financial information about a dam project is presented in the table below. Initial investment cost…

A: Present worth refers to the current value of a future cash flow or series of cash flows. It is…