A Small Private University Normally Charges the Same Price, $500

question 3

Essay

A small private university normally charges the same price, $500 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 60 percent occupied during the summer session. A student of operations management wonders if revenue 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 7200 credit-hours at the current rate of $500, 10,000 credit hours at $420, 12,000 credit-hours at $350, and 15,000 credit-hours at $300. Based on this demand curve, what price point would best serve the university, if its objective is the greatest revenue for the summer session?

Recognize the role and effects of schemas and stereotypes in shaping perceptions and judgments.

Apply critical thinking skills in personal problem solving and decision making.

Identify and utilize different problem-solving strategies like subgoal setting and working backward.

Understand the advantages and disadvantages of using heuristics in decision making.

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Definitions:

Client Impairment

A reduction in a client's ability to function normally, either physically or mentally, which can be a focus of therapeutic intervention.

Interpersonal Context

The relational environment and dynamics between individuals that influence behavior, emotions, and thoughts.

Idiosyncratic Factors

Unique personal attributes or characteristics that influence behavior and responses in different situations.

Universal

Relating to or affecting all people or things in the world or in a particular group; applicable everywhere or in all cases.