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:

Discrimination

Unfair or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Free Association

A psychoanalytic technique used to explore the unconscious by having patients reveal whatever thoughts, feelings, or images come to mind.

Psychoanalytic Patient

An individual undergoing psychoanalysis, a therapeutic technique originally developed by Freud, aimed at uncovering unconscious thoughts and behaviors.

Negative Criticism

Feedback or comments that express disapproval or highlight deficits and problems, often with the intention of prompting improvement.