Assume that the marginal cost of admitting one more student


Assume that the marginal cost of admitting one more student is constant for every university. Also assume that at every university, the demand for places in the freshman class is downward sloping. Now, suppose that the public becomes upset that universities charge different prices to different students. Responding to these concerns, the federal government requires universities to charge the same price to each student. In this situation, who will gain, and who will lose?

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Accounting Basics: Assume that the marginal cost of admitting one more student
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