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Why Is Student Financial Aid a Profit-Maximizing Decision Foruniversities

Question 50

Multiple Choice

Why is student financial aid a profit-maximizing decision foruniversities?


A) because universities only give financial aid to a very small number of students
B) because as long as the students on financial aid pay some amount that is still greater than the marginal cost of attending
The classes, the university still gains positive marginal
Profit
C) because the university is able to charge no more than a dollar over the marginal cost of attending classes
D) because the university gains goodwill by providing financial aid

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