Question 11 4.5 pts Please refer to the following information to answer the question (in bold) below: Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences. Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students. Under the "Standard" plan: • Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours • For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition price of $36,000. 。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18 credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit hours. They only pay the $36,000 flat price. • For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit hours beyond the 18 credit hours. For each of the following credit hours options, determine which tuition pricing plan Raghav should opt into, assuming he has non-satiated preferences. A. 13 credit hours [Select] B. 15 credit hours [Select] C. 18 credit hours [Select]
Question 11 4.5 pts Please refer to the following information to answer the question (in bold) below: Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences. Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students. Under the "Standard" plan: • Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours • For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition price of $36,000. 。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18 credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit hours. They only pay the $36,000 flat price. • For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit hours beyond the 18 credit hours. For each of the following credit hours options, determine which tuition pricing plan Raghav should opt into, assuming he has non-satiated preferences. A. 13 credit hours [Select] B. 15 credit hours [Select] C. 18 credit hours [Select]
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter1: What Is Economics
Section1.3: What Do Economists Do?
Problem 5R
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![Question 11
4.5 pts
Please refer to the following information to answer the question (in bold) below:
Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other
goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences.
Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students.
Under the "Standard" plan:
• Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours
• For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition
price of $36,000.
。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18
credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit
hours. They only pay the $36,000 flat price.
• For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit
hours beyond the 18 credit hours.
For each of the following credit hours options, determine which tuition pricing plan Raghav should opt into, assuming he has
non-satiated preferences.
A. 13 credit hours [Select]
B. 15 credit hours [Select]
C. 18 credit hours [Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9db719b2-2e36-45c3-97ec-0e83887b6c6a%2F0ff7aef9-0039-4d11-a43d-25871ee37ade%2F0ill5zl_processed.png&w=3840&q=75)
Transcribed Image Text:Question 11
4.5 pts
Please refer to the following information to answer the question (in bold) below:
Raghav's annual income is $40,000. He consumes credit hours (CH) of undergraduate education at Niagara University and all other
goods (AOG). Each unit of all other goods costs him $1/unit. Assume he has rational preferences.
Besides the "Simple" plan, NU also offers the "Standard" tuition plan to students.
Under the "Standard" plan:
• Tuition costs $3,000 per credit hour for students enrolled in fewer than 12 credit hours
• For students enrolled in at least 12 credit hours and no more than 18 credit hours, students pay a flat "full time" tuition
price of $36,000.
。 Hint! Please note that the "full time" tuition price of $36,000 covers ALL the credit hours a student enrolls in, up to the 18
credit hour maximum. Students do NOT pay both a $36,000 flat fee AND a 3,000 per credit hour for their first 12 credit
hours. They only pay the $36,000 flat price.
• For students enrolled in more than 18 credit hours, they pay an extra $2,000 per credit hour surcharge for those credit
hours beyond the 18 credit hours.
For each of the following credit hours options, determine which tuition pricing plan Raghav should opt into, assuming he has
non-satiated preferences.
A. 13 credit hours [Select]
B. 15 credit hours [Select]
C. 18 credit hours [Select]
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