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

question 80

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% 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:

Staphylococcus Aureus

A type of bacteria commonly found on the skin and in the nose, which can cause a range of infections from mild skin conditions to more serious diseases.

RANKL

A signaling molecule that plays an essential role in bone remodeling by promoting the formation, function, and survival of osteoclasts, which are cells responsible for bone resorption.

Osteoblasts

Cells responsible for bone formation, involved in the synthesis and mineralization of bone during both initial bone formation and later bone remodeling.

Osteoclasts

Bone-resorbing cells that play a crucial role in bone remodeling and calcium homeostasis within the body.