Question

In: Economics

Most colleges and universities publish a single tuition figure, often right on their Web site. Yet,...

Most colleges and universities publish a single tuition figure, often right on their Web site. Yet, it’s claimed that colleges and universities are masters of first-degree price discrimination.
a. Explain how, in the real world, colleges and uni- versities charge different students different prices for access to the same good.

Solutions

Expert Solution

A.

In first degree price discrimination, the seller charges different prices to the consumers that are equal to their willingness to pay. Colleges and universities do it in different ways. The first way is to award scholarships to the students on the basis of their income, educational background and the geographical region. It makes their different prices to have a legal cover that one course is being sold at different prices.  The second way is to keep a few seats reserved for students from economically weaker section, minorities and poor societies. These students pay as per their paying capacities and colleges and universities show it as diversity drive, or a type of affirmative action to spread education or contribution towards community development. The third way is setting up different quotas such as management or director's quota where the different prices are being charged for the same course. It makes these institutions to make first degree price discrimination.


Related Solutions

Because of high tuition costs at state and private universities, enrollments at community colleges have increased...
Because of high tuition costs at state and private universities, enrollments at community colleges have increased dramatically in recent years. The following data show the enrollment (in thousands) for Jefferson Community College for the nine most recent years. Click on the datafile logo to reference the data. Year Period (t) Enrollment (1,000s) 2001 1 6.5 2002 2 8.1 2003 3 8.4 2004 4 10.2 2005 5 12.5 2006 6 13.3 2007 7 13.7 2008 8 17.2 2009 9 18.1 (a)...
Colleges and universities often make loans to students. How would these loans be reported on the...
Colleges and universities often make loans to students. How would these loans be reported on the financial statements? Question 54 options: A) An investment. B) A liability. C) An expense. D) A receivable.
you have been asked to study the mean yearly tuition at private four-year colleges and universities...
you have been asked to study the mean yearly tuition at private four-year colleges and universities across the United States. You are interested in making some decisions concerning this population parameter. You select a random sample of 50 universities from this population. The mean tuition at these universities is found to equal $18,205. You still have reason to believe that the population standard deviation of the tuition amounts is known to equal $9,000. At both the 5% and 10% levels...
Given our current state of the world with COVID and most colleges and universities now operating...
Given our current state of the world with COVID and most colleges and universities now operating in a hybrid or all online model and facing potentially large budget shortfalls, do you think that HE institutions can continue to provide the needed services to disabled students while moving many courses online? In what ways do you anticipate HE institutions will need to change in order continue to provide proper services to disabled students while facing budget shortfalls?
Quoting this web site (which I haven't thoroughly verified for credibility yet): The material is graphene,...
Quoting this web site (which I haven't thoroughly verified for credibility yet): The material is graphene, also known as graphite, a naturally-occurring mineral that forms a one-atom-thick sheet of honeycomb crystal lattice material (the ideal shape for solar cells) that has surprisingly robust electric characteristics. In what context is this ideal shape? In the nano or macro scale? Why?
Employers often select applicants based on whether they hold an academic degree. In most countries, universities...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with these...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from the government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with these...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with these...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities...
Employers often select applicants based on whether they hold an academic degree. In most countries, universities need to be granted charters from government to be able to award academic degrees to their students. In return, universities must abide by comprehensive and detailed government regulations upholding appropriate standards for teaching, examination and lecturers. Use the theories of market failure and government intervention to explain the reasons for government intervention into the market for higher education. Critically discuss potential problems with these...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT