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The sheer number of people applying for the program shouldn't determine how selective it is, especially considering quite a few PhD applicants use going back to school as a plan B after not meeting a career goal (the same goes for a lot of JD applicants). I'd bet there are a few of those 400 applicants that have already been rejected at a top MBA school.
That said, if you move out of the top couple of MBA programs, I'm sure selectiveness goes down below that of a similarly ranked PhD program quickly. Also, if you're going to base it completely on the % of applicants accepted, than PhD programs will always be much more selective. However, following that logic, you'd have unis that are lucky to be tier 3s with PhD programs that are "more selective" than HBS.
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