The Exorbitant Course Fees -Which of These Formulations of the Budget Constraint Is Correct

question 71

Multiple Choice

The Exorbitant Course Fees. The $75 per credit hour course fee tacked on to all the MBA classes has generated a windfall of $56,250 in its first semester. "Now we just need to make sure we spend it all," the Assistant Dean cackled. She charged the Graduate Curriculum Committee with generating a shopping list before their next meeting. Four months later, the chairman of the committee distributed the following. As the professor for the quantitative modeling course, he tended to think in terms of decision variables, so he added the left-most column for ease of use.
$$\begin{array} { | c | l | l | l | } \hline \begin{array} { l } \text { Decision } \\\text { Variable }\end{array} & \text { Item } & \text { Cost } & \text { Note } \\\hline \text { A } & \text { iPads for everybody } & \$ 750 / \text { unit } & \text { Must get a cover if these are purchased } \\\hline \text { B } & \text { iPad covers with MBA logo } & \$ 25 / \text { unit } & \text { Not needed unless we buy iPads } \\\hline \text { C } & \text { Speaker series } & \$ 15,000 & \text { Can't afford both this and the iPads } \\\hline \text { D } & \begin{array} { l } \text { Subscriptions to the Wall } \\\text { Street Joumal }\end{array} & \$ 10 / \text { unit } & \text { Don't need if we have the electronic version } \\\hline & \begin{array} { l } \text { Subscriptions to the } \\\text { electronic version of the Wall }\end{array} & & \\\text { E } & \begin{array} { l } \text { Street Joumal }\end{array} &\$5/unit& \text { Worthless without the iPads } \\\hline\end{array}$$
-Which of these formulations of the budget constraint is correct? Assume that there are 20 students in this semesters MBA class.

• A) $750A + $25B + $15,000C + $10D + $5E ? $56,250
• B) 20A + 20B + C + 20D + 20E ? $56,250
• C) A + B + C + D + E ? 20
• D) $15,000A + $500B + $15,000C + $200D + $100E ? $56,250

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Definitions:

Reinforcement Contingencies

The conditions or rules that determine whether responses lead to the presentation of reinforcers or not, influencing the likelihood of a behavior occurring again.

Desirable

Qualities or features that are attractive or worth having.

Intermittent Reinforcement

A conditioning schedule where rewards or punishments are given out unpredictably, significantly impacting behavior.

Continuous

An unbroken, uninterrupted sequence or condition, often referring to processes or phenomena.