Texas’s MBA program

Consider Texas’s MBA program:
a) What is the relationship between the program’s average costs and the number of students in the

program? Graph it out, supposing the current average cost is $10K per student/year with 30 full-time

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students. Do you think average cost will increase or decrease with more enrollment? Why?
b) Is it potentially efficient to offer different concentrations to MBA students? Explain.
c) Does the university price-discriminate? How?

Sample Solution

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