Academic institutions frequently talk about academic excellence and how they have superior programs in everything. "If it is not top quality it will not be offered here" seems to be the theme of many college catalogs. Explain, on the basis of material in this chapter, why this public relations noise is not believable.
What will be an ideal response?
Colleges must look at the cost of providing top quality education. If they accepted a bit less quality in several programs and were able to offer a new program or two with the money saved, their constituency may be happier and revenues could go up. Again costs and benefits must be evaluated on all the margins. It may be too costly to provide the best of everything.
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Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the shortage in the market if the price is $4?
A) 0 units B) 10 units C) 20 units D) 40 units
What are the three types of firms? Explain the major advantages and disadvantages of each
What will be an ideal response?
The price of coffee rose 50 percent and coffee sales fell 25 percent. Doughnut sales also fell 25 percent. From this information we can conclude that
a. demand for coffee is inelastic. b. coffee and doughnuts are complements. c. the cross elasticity of demand is minus 0.5 percent. d. All of the above are correct.
A monopolistically competitive firm has a:
A. highly elastic demand curve. B. highly inelastic demand curve. C. perfectly inelastic demand curve. D. perfectly elastic demand curve.