1. Identify three of the most significant costs for for-profit colleges and discuss (in the short run) how the magnitude of each cost type affects (i) profits, (ii) equilibrium enrollment and (iii) for-profit colleges’ decisions about whether to enter or exit the market.
2. Discuss how reduced availability of financial aid dollars would affect marginal cost of for-profit colleges, marginal revenue and equilibrium quantity (i.e. enrollment).