Think about a university as a firm.

a) How would you measure its output?

b) What are the university's fixed costs, and what are its variable costs?

c)Can a university be "too big" or "too small" from the cost perspective? Explain.

d)Would you expect teachers to be more specialized at a big university or a small university? Explain.

e) Based on your answer to d), would you prefer to study at a big university or small university? Why?