A Recent Study on Enrollment at a Liberal Arts College

question 158

Multiple Choice

A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.91.The administration is considering a tuition increase to help balance the budget.The revenue-maximizing decision is to

• A)decrease tuition, which should boost enrollment enough to balance the budget.
• B)decrease tuition, which would bring in more revenue.
• C)leave tuition as is-an increase would not help balance the budget.
• D)increase tuition, which would bring in more revenue.

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Definitions:

Communication Patterns

The ways in which information is transmitted and received within a given context, often focusing on interpersonal and organizational communications.

Instrumental Objectives

Goals that are pursued as means to an end, serving as tools or mechanisms to achieve something else.

Member Affective Needs

The emotional and psychological requirements or preferences of members within a group or organization.

Cohesion

The force that holds a group of people together, ensuring unity and solidarity.