Case Assignments 4 &5
Please read the uploaded documents (Chapter 4 & 5) and answer the below case assignments questions.
*Case assignments are labeled “Case Assignments 4 &5”. The additional uploaded documents are pages from “Chapter 4 & 5″*
- Chapter 4 – “Analyzing Managerial Decisions: Setting Tuition and Financial Aid” (Please ensure the analysis and recommendation is answered sufficiently.
- Chapter 5 – “Analyzing Managerial Decisions: Rich Manufacturing”
*When you are answering the questions remember to focus on the economic reasoning behind the problems. Also use the information in the chapter to suggest economic solutions. Try to include outside sources along with your text book.*
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Case Assignments 4 and 5
“Analyzing Managerial Decisions: Setting Tuition and Financial Aid”
The decision by the Liberal Arts College to raise the tuition fees and also lower the financial assistance to students can be analyzed using the price elasticity concept. It measures the change in the demand of a service or commodity due to price changes. People want to have high quality higher education to be competitive in the labor market. Consequently, the tertiary institutions that charge high tuition fees are believed to provide education, which is exclusive in nature. Therefore, attending them is perceived as a status symbol, thereby making the academic services to be Veblen goods (Beverly, Lemprière, Canada & Canadian Forest Service, 1996).
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