The University President Believes That Increasing Student Tuition by 5

question 78

Multiple Choice

The university president believes that increasing student tuition by 5% will increase revenues.If the president is correct that revenues will increase,then the tuition increase will _____ the number of students enrolling by _____%.

• A)reduce;less than 5
• B)reduce;more than 5
• C)increase;exactly 5
• D)increase;less than 5

---

Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.

Average Variable Cost

The per-unit variable cost, found by dividing the total variable expenses by the amount of output generated.

Marginal Cost

The cost of producing one additional unit of a good or service, which is used in decision-making about output levels.

Marginal Cost

Marginal Cost is the cost incurred by producing one additional unit of a product or service.