Why Is Student Financial Aid a Profit-Maximizing Decision Foruniversities

question 71

Multiple Choice

Why is student financial aid a profit-maximizing decision foruniversities?

• A)because universities only give financial aid to a very small number of students
• B)because as long as the students on financial aid pay some amount that is still greater than the marginal cost of attending
• The classes, the university still gains positive marginal
• Profit
• C)because the university is able to charge no more than a dollar over the marginal cost of attending classes
• D)because the university gains goodwill by providing financial aid