It is estimated that over $100,000$ students will apply to the top $30$ MBA programs in the United States this year.

a$.$ Using the concept of net present value and opportunity cost, when is it rational for an individual to pursue an MBA degree.

multiple choice $1$

When the net present value of attending graduate school is at least $$100,000.$

When the net present value of attending graduate school is greater than zero.

When the benefits of attending school are greater than zero.

When the costs of attending school are near zero.

b$.$ What would you expect to happen to the number of applicants if the starting salaries of managers with MBA degrees remained constant but salaries of managers without such degrees increased by $10$ percent?

multiple choice $2$

It would decrease.

It would not change.

It would increase.

There is no way of telling.