To evaluate the several possible rationales for charging different prices for different courses of study.
To evaluate the income distribution effects of a pricing scheme that charges the same fee to all students.
To evaluate the impact on the efficiency of resource allocation within the university if they adopted a system of full cost pricing for various courses.
To evaluate if there would be complaints if large sections of lectures were taught by graduate students, if these were priced significantly lower than small seminars taught by outstanding scholars.
To evaluate if there would be problems if large sections of lectures were taught by graduate students if these were priced significantly lower than small seminars taught by outstanding scholars.
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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
- Many strategists argue that firms should centralize R&D activity in the United States. Which of the following statements, if true, would weaken this argument? United States consumers are the most affluent consumers in the world. U.S. gives more importance to scientific establishments than transactional establishments. Competition among U.S. firms has deteriorated in the recent past. Proprietary regulations that exist in the United States are severe.arrow_forwardA global religious organization runs a vast network of educational institutions, healthcare facilities, and charitable programs worldwide. These initiatives are funded through donations, endowments, and government grants. The organization's economic activities have a significant impact on local economies, particularly in areas with limited public services. The question is: In this scenario, the global religious organization's activities primarily: A) Replace government responsibilities B) Contribute to local economic development and social services provision C) Focus solely on religious conversion D) Drain local economic resourcesarrow_forwardThe Energy Information Administration's forecast that world crude oil demand will likely outpace supply by 20 million barrels this year has also increased market uncertainty and driven up prices. Companies in the US steel and alumina industries have been urging the loosening of import restrictions because they fear running short of petrol. Despite the potential market effects, analysts believe that most steel and alumina companies won't be significantly impacted because crude oil only accounts for a small fraction of their overall costs. In general, rising crude oil prices are the result of a mix of supply and demand issues, market uncertainty, and other reasons. The price of this significant commodity will undoubtedly continue to be significantly influenced by global supply and demand dynamics, even though the precise trajectory of prices in the future is difficult to forecast. 1) Draw a graph to show this information.arrow_forward
- People need medications, but the poor often cannot afford them. Governments may not provide subsidies for health care and medications. Meanwhile, biopharmaceutical firms focus their R&D on compounds likely to provide the best returns. What is the proper role of the following groups in addressing these dilemmas: national governments, branded biopharmaceutical firms, and generic manufacturers?arrow_forwardNutraSweet Aspartame is a low-calorie, high-intensity sweetener known by Monsanto’s brand name, NutraSweet. It was the key to the success of Diet Coke and Diet Pepsi in the 1980s. NutraSweet made billions of dollars, yielding very high profits. Such profits usually attract entry, but in this case entry was barred by a patent on the sweetener and because the process of creating the sweetener was expensive and difficult. Monsanto had a distinct capability—its monopoly. It had also created another strategic asset—the NutraSweet brand name as represented by its trademark ‘swirl.’ The problem was that Monsanto’s patent was about to expire. As a result, the Holland Sweetener Company began building an aspartame plant in Geleen, the Netherlands, to challenge Monsanto’s hold on the aspartame market. Holland Sweetener was a joint venture between the Japanese Tosoh Corporation and DSM (Dutch State Mines). What did Monsanto do? Why? What did Holland Sweetener do? Why?arrow_forwardColombia and Brazil are two of the major suppliers of coffee globally, each accounting for the production of roughly 30 percent of all coffee consumed. Suppose that Colombia and Brazil both have the same marginal cost, MCC=20 + 120qc and MCB=20 + 120qB. There are also many smaller coffee producing nations that operate competitively. Suppose that after substracting supply of these smaller nations from global demand, the remaining demand is P= 720-20Q which implies that MR=720-4OQ :Determine the optimal quantity of coffee that Columbia and Brazil should each produce and the global market price they should establish if they collude (you can think of the price being for a 100 kilogram bag of raw coffee beans).arrow_forward
- For each of the policy objectives listed, identify each as a product of either financial incentives governments provide or the system of intellectual property that governments uphold. Some objectives may not be supported by governments at all. Financial Incentives Intellectual Property Fund basis research Make research and development less risky for private firms Ensure that inventors are rewarded for making useful inventions Transfer a significant share of new inventions under government control Prevent inventors from creating redundant inventions Ensure that inventors are the only beneficiaries of their invention's benefits.arrow_forwardQ 4: Answer the questions below using the following Table (and Figures if needed): c) As Vice-Chancellor, should you consolidate or expand the programs. Provide your advice using the information in the table d) What is the effect of the introduction of a license fee of 9 million dollars by the government for undergraduate programs being offered by universities on the zero-profit curve for these programs? Use relevant plots in your answerarrow_forwardanswer true or false and give a short explanation why. Static efficiency is the appropriate measure of efficiency when time considerations do not play a significant role. Monopolists over-converse resources from a dynamic efficiency perspective. Biofuels is a back-stop technology for oil and would cause more present production of oil.arrow_forward
- A drug company is deciding how much to invest in Research and Development into finding a cure for the common cold. The table below shows the company’s demand for financial capital for R&D of this cold drug, based on its expected rates of return from selling the cure. Every investment has an additional 4% social return: that is, an investment that pays at least a 5% return to the drug company will create at least a 9% return for society as a whole. Estimated Rate of Return_____________________ Value of R&D Projects That Provide at Least This High a Private Rate of Return to the Drug Company (measured in millions of dollars) 10% $220 9% $228 8% $238 7% $250 6% $264 5% $280 4% $298 If the opportunity cost of financial capital for the drug company is 7%, the drug company will invest in R&D if it receives both the private and the social benefits of this investment. Question 3 options:…arrow_forwardThe annual market marginal demand curve for electricity is MB=400-1.5Q. The annual marginal cost curve is MC=50+Q. The government is considering whether to build one of three plants. The first will have a maximum production capacity of 50 units of Q; the second a maximum capacity of 100 units, and the third, a maximum capacity of 200 units. Plants need to be operated at maximum capacity; otherwise, excess investment cost (not depicted in the diagram) will be incurred. Given this background: What is the annual benefit of the 50-unit plant? What is the annual cost? What is the annual net benefit?arrow_forwardConsider PNW Airlines, an airline focused on transporting cargo. Their fleet is composed of four cargo airplanes. Total cargo capacity of the fleet is 100,000 cubic feet. The monthly cost of maintaining and operating the fleet is $50,000. Market research indicated that the demand curve for cargo capacity is d=300,000-25,000p where d is the demand across all segments and p is the transport price per cubic foot. Question 1: What is the price that maximizes profit for PNW Airlines if all the demand comes from a single segment? What is the demand if PNW sets price to be the value found in Question 1? How much profit does PNW Airlines make?arrow_forward
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning