Eco 204 Week 2 Assignment

Week 2

Assignment

D. Josh Rhoderick

ECO204 Principles of Microeconomics

Instructor: Derrick Vance

Oct 18th, 2015

Assessing tuition costs at Universities and Colleges can be of an essential importance to college institutions who may be suffering from unfavorable financial effects because of the lack of resources that are being distributed and the increase of education and faculty costs. However; with the increasing cost of tuition, this can have parents wondering if the investment of higher learning is worth it, especially when the costs of college exceeds what a student can make in their first year of working. Can Universities find alternate ways to increase their revenue, other than raising tuition? There are many ways institutions can make more revenue, they just need to collaborate their minds and resources to do so. Nobody State University increases their tuition, hoping to get more revenue, is it a wise decision for administration? In this paper I will go over conditions in which revenue may rise, fall, or remain the same, focusing on the relationship between the increase and decrease of revenue from student enrollments and possible ways to expand their revenue, outside of raising tuition. Well there are many reasons why colleges raise their tuition to increase their revenue, as I will discuss in this paper. Price determination is a difficult decision; one that should establish a tuition that retains current students, attracts new students, and provides adequate revenues to cover costs. (Byran & Whipple, 1995)

Rise: Conditions under which revenue will rise would be if the enrolment of students remains the same and rises. The university will have look at other factors that will make their school more appealing and worth the additional costs for tuition.

Fall: Conditions under which the revenue will fall are if there is a decrease in tuition. Decreasing the tuition could result in an enrollment increase; the cost change will only have new...