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Raise or Lower Tuition - Essay Example

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Business and economics Name Institution Introduction Availability of capital is paramount of the success of any business venture one intends to endeavor in. On the same note, the ability to generate and comprehensively manage the expenditure is one of the most important aspects of the entire business activity…
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Raise or Lower Tuition
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Raise or Lower Tuition

Download file to see previous pages... On that note, we are going to comprehensively study the ways in which this institution can generate more income, for instance through the increase of tuition fees among other strategies that need to be undertaken in a bid to achieve this goal. Evidently, another way in which in the nobody state university can raise its income is through the reviewing of some of the mechanisms that involved in the enrolling of students into the institution. Notably, in the study of the manners in which institutions of higher learning can increase revenue, it is essential to discuss on the enrollment exercise since the major earner of capital in this line of business is largely dependent on the number of individuals that enroll in the particular institution which in this case is the nobody state university. Consequently, in the subsequent sections we are going to highlight some of the ways that revenue can be increased in this institution giving account of the impact they will have in the institution as whole. Will an increase in the tuition fee automatically contribute to an increase in revenue? From a literal point of view, a rise in the tuition fees will result in the increase in the revenue in the institution of higher learning; nobody state university. ...
Thus, in the case of lower population, the capital generated may not be as pleasant. On the other hand, high tuition fees may cause huge loses. On a similar theme, if the tuition fees are raised by significantly with comparison to other educational institution, the enrolment rates will drop and as a result the revenue collected will be less. Furthermore, with high tuition fees many students who are enrolled may opt out in search of other institutions that offer favorable fee structures and therefore it follows that huge revenue loses will be recorded. Although, an increase in tuition requires an increase in revenue generation, it is essential to monitor the margin of the rise to avoid exploitation of the individuals in the educational institution; students who are the major earner of capital. Describe conditions under which the revenue will rise? Apparently, one of the most logical approaches to increase the revenue of nobody state university, is the incorporation of business strategies founded on the principle of unit elastic demand. On that note, this business principle postulates that, a change in the price of a commodity results into an equal change in the quantity demanded for. In this case, incorporation of this business strategy into the education institution requires that, an increase in the tuition fee will consequently lead to the increase in the revenue collected since the enrolment rate will increase due to an increase in the demand for the educational services. On the same note, the rise in revenue will be attributed to the increase in the student population. Describe conditions under which the revenue will fall? The revenue collected ...Download file to see next pagesRead More
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