Question

1. On the concept of "Get In-State Tuition at Out-of-State Colleges", Discuss the ways colleges segment the market. Give me your opinion on the justification for the different strata of tuition. Why should out-of-state students subsidize in-state students? Finally, in what ways can students get around the residency requirements of universities?

2. How does the Honeycrisp apple market work? Why is the price of this apple so high? Why do the growers of these apples expect their apples to last only for a short period of time?

Answer 1

1. Before going into the concept of 'Get In-State Tuition at Out-of-State Colleges' we should know what is In state and Out-of-State. In-State means the Institutions established in the state and charging fees according to the rules established by the State Government. We can say a Provincial Institution charging fees according to the guidelines of the Provincial administration.

Out-of state means the Institution running into a different state of living of the student. The out-of State tuition fees referred to the fees a student who are not the residents of the state and they have to pay according to the Institutional guidelines.

There are Institutions established and supported by the aids provided by the Government and again there are Institutions that are privately owed and have to manage all their expenses from the fees they charge from the students. There will be variable difference between the fees of a State owned Institution and a Privately owned Institution.

The Colleges segment the market in the following ways -

1. Students coming out of affluent background.
2. Students from Poor economic background.
3. Meritorious students.
4. In state students.
5. Out-of-state students.

As per Out-of-State students subsidizing the fees for the In-state students can be justified till the time it is not a burden to the out-of-State student as students are not economically Independent they have to depend on their parents for fees. As of a student from economically strong background can be charged higher fees as he is able to pay because of higher disposable income. But there should be some reward or discounting for the students who are not affluent and managing the fees somehow. Scholarships can pull-off some of the burden from these students.

In my opinion the colleges should charge higher fees from students having strong economical background whether they are In-State students or Out-Of-State students. And there should be separate provision for the students who need support rather being Out-of-State. Though Domicile students have some advantage as the Governments guidelines are supportive to them and the College have to follow the instructions accordingly. Out-of-State students can be get the benefit of the scholarship schemes exploring their Merit.

To conclude if one is to get the benefit the other will be in loss. More elaborately if we have to Plus somewhere we have to Minus somewhere.

Following ways the students can get Residency Requirements of Universities -  

1. The student should be physically present to live in the state of study for one full year before establishing his residency.
2. Proper bank statements should be submitted by the student.
3. The student should not move to their home while in vacations.
4. The intent of the student should be to live in the state beyond getting education.
5. They must prove their financial independence. As out-of-State students get part time opportunities to manage their expenses.
6. Proper declaration about the resident address of their parents.

2. Honey Crisp apple is a variety of apple that is famous for its taste and crispiness. The market is totally monopolistic as these apples are produced hugely in United States and The only exporter of this variety of apple all over the world. Honey Crisp apple is considered as the first brand name given to an apple. This apple was developed by the University of Minnesota and had a patent on this apple.

The prices of this apple is so high because of the reason that this variety of apple is so popular - crisp, balanced sweetness and acidity with huge demand among the customers are willing to pay three to four times more in comparison to the other varieties of apples. The heavy demand in the market and the supply ratio makes these apples costly.

The growers of these apples expect their apples to last for a short period of time because -

1. Proper Sunlight is required to maintain the vigor of the apple. It is hard to maintain the length of the branches as it need equipment to do the necessary cuttings.
2. These apples are vulnerable to sunken brown spots that creates huge rejection while sampling.
3. These apples grow big. The size of the apple is considered a matter while purchasing customers reject big size apples.
4. There apples are prone to sunburn as the skin is very thick.
5. Harvesting and storage of these apples is a problematic issue as these apples have low shelf life. Because of the same reason farmers want their apples to sell fast as the passage of time the fruit gets rotten and rejection rate is not cost effective.
6. The huge cost involved in planting and harvesting these apples.
7. The Production to rejection ratio is very high.