Assume that your current university is the only institution

Assume that your current university is the only institution offering online MBA program. Assume also that there are clear advantages of online program over brick and mortar school - such as the flexibility. Which alternative would be better for your university - charge high tuition (make above normal profit) and attract less students or charge lower fees (make normal profit) but attract a lot more students?

Solution

As per my understnding my university will go for the second option of :

Charge lower fees (make normal profit) but attarct a lot more students.

More students means more income and since its olnine MBA programme, the tution fees can be kept at low. Also it has a monopoly, whcih means I am the ruler and can decrease the tution fees, and get the maximum attention and enrollemnt of students.