Related to the Economics in Practice on page 179: When considering expanding its student body, a college should
A) compare the marginal cost of educating an additional student to the tuition that student pays.
B) compare the average total cost of educating an additional student to the tuition that student pays.
C) definitely expand because education is very important and should be made available to as many people as possible.
D) only consider doing so if they have sufficient housing.

Question

Quizplus · Accepted Answer

When considering expanding its student body, a college should compare the marginal cost of educating an additional student to the tuition that student pays. This approach will help the college determine whether accepting additional students will be financially beneficial, as the added cost of resources necessary to educate each additional student should be less than the amount of tuition revenue received from that student. By comparing marginal cost and marginal revenue, the college can make a more informed decision about whether to expand its student population.

Related to the Economics in Practice on Page 179: When