Your school decides to increase the intake of new students next year
To make its decision, what economic concepts would it have considered? Would the school have used the "economic way of thinking" in reaching its decision? Would the school have made its decision on the margin?
The school would consider the extra revenue that each additional student would bring and compare that to the extra cost of providing each student with instruction and service. By comparing the extra revenue and the extra cost, the school is making its decision on the margin and is using the economic way of thinking. If the school compares the additional revenue to the additional cost, it makes its decision on the margin.
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Explain using welfare measures whether consumers prefer a single price monopoly or a perfect-price-discriminating monopoly
What will be an ideal response?
Which of the following economic explanations describes "cabin fever"?
a. The marginal utility of winter is greater than zero. b. Each additional cold day brings more disutility. c. The law of increasing marginal utility as applied to cabins. d. Spending winter in a cabin is a normal good. e. Each additional cold day brings more utility.
Producer surplus measures the difference between total revenues and fixed cost
a. True b. False
Which of the following activities, ceteris paribus, will cause increased foreign demand for U.S. dollars?
a. The World Cup soccer competition is held in Rio de Janeiro, Brazil. b. The U.S. government decreases the tariffs on imports from Germany. c. U.S. consumers develop a taste for teas exported from southeast Asia. d. U.S. real interest rates abruptly rise higher than European real interest rates.