A Small Private University Normally Charges the Same Price -$200-Per

question 47

Essay

A small private university normally charges the same price -$200-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 (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 9000 credit-hours at the current rate of $200, 12,000 credit hours at $180, 15,000 credit-hours at $160, and 18,000 credit-hours at $140. 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:

Complex Communication

Communication that involves multiple layers of meaning, requiring advanced cognitive and interpretative skills to understand fully.

Virtual Teams

Groups of people who work together from different geographical locations, connected by technology.

Across Culture Competency

Skills and knowledge that enable individuals to operate effectively in diverse cultural settings, understanding and respecting cultural differences.

Global Virtual Team

A group of individuals who work across time, space, and organizational boundaries with links strengthened by webs of communication technology.