A Small Private University Normally Charges the Same Price-$300-Per Credit-Hour

question 6

Essay

A small private university normally charges the same price-$300-per credit-hour for all courses and for all students. While the university is pretty near capacity in the fall and spring, it finds that its classrooms are only about 50% occupied during the summer session. A student of operations management (who has recently read this chapter) wonders if yield management might be useful to both the university and its students alike. This student, with help from some economics majors, estimates a demand curve for summer course enrollment. Points on this demand curve include 6000 credit-hours at the current rate of $300, 9,000 credit hours at $210, 12,000 credit-hours at $180. Based on this demand curve, what price point would best serve the university, if its objective is the greatest revenue for the summer session?

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Definitions:

Morphemes

The smallest grammatical units in a language that convey meaning, including both root words and affixes.

Syntax

The set of rules and principles that govern the structure of sentences in a language, including word order.

Psycholinguistics

The study of the psychological and neurobiological factors that enable humans to acquire, use, and understand language.

Phonemes

The smallest units of sound in a language that distinguish one word from another, essential for speech and language.