Your Student Association Is Looking for an Auditorium to Rent

question 171

Essay

Your student association is looking for an auditorium to rent for an all- day conference. The university's Performing Arts Center is vacant on that day, so the association wants to rent it. The physical plant manager tells you that the daily rent is $660, which includes $400 to cover part of the cost paid to build the Center, $40 to cover part of its regular maintenance cost, $50 to help pay for the building's insurance, $100 to cover the extra cost of electricity that the university would incur because of the conference, and $70 to pay for additional janitori services for the conference. You know that no one else wants to rent the Center on that day and you think that th that the manager charges is too high. But how much should you pay? Use the economic way of thinking to answ question and to convince the manager to accept your offer:
a) If you rent the Center, what will be the university's marginal cost of renting the center to you?
b) If you rent the Center, what will be the university's marginal benefit of renting the center to you?
c) What amount of rent should you offer? Convince the manager to accept your offer.

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Definitions:

Knowledge Creation

The process of generating new ideas, solutions, or innovations through the transformation and combination of existing information.

Knowledge Hoarding

The practice of individuals or organizations deliberately keeping or withholding knowledge from others, often to maintain a competitive advantage or control.

Knowledge Application

The use of accumulated information and skills in practical situations to solve problems or achieve goals.

Strategically Minded

Having or showing the ability to develop and implement plans that ensure success or advantage, especially by long-term planning.