Imagine You Are Part of a Group of University Administrators

question 117

Essay

Imagine you are part of a group of university administrators discussing whether or not to increase student tuition. How might this group fall prey to groupthink? And what strategies can you take to reduce groupthink in in this setting.

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Definitions:

Purely Competitive

An economic model where numerous small businesses operate, offering identical products, with unrestricted market entry and exit, and complete transparency of information.

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.