The main source of revenue for this state university is the fees that students pay for the tuition services that they receive from the university. Revenue behaves differently depending on the price and…
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The definition of revenue is actually total amount of money that a firm, in this case the university receives, from the goods and services it offers for sale.
Average Revenue= TR/Q- This the total amount of fees paid by each individual student in the university. It’s the fee per student. Plot of these values on a graph will give us the demand curve of the university.
If the students behave like rational consumers they will evaluate the effect of the rise in tuition fees on their gain in the institution. As we can observe from the above curves, we can say that an increase in price will lead to a decrease in the goods consumed. This is the case with normal economic expectation from the students who we categorically say that they are normal and rational consumers of the good which is education. It is true to say that an increase in fees may lead to decline in the number of students because some may drop out of school due to lack of funds to further or complete their studies. This is a decrease in Total revenue TR for the University from TR1 to TR2. This is actually because the price which is the tuition fees has increased from P1 to P2. This scenario the state university might loss revenues so if the students will behave like normal consumers they should reconsider that decision.
An increase in tuition will also increase in revenue if the students do not withdraw their membership. Another scenario where the revenue may even escalate is when new students flood in to register as students of the university while the old ones retain their membership; this is because they associate the increase in tuition with an increase in services in the university. In this case the University will register high revenue and thus if the situation is good and the students behave like that, they should increase tuition for them to earn more revenue.
The revenue will remain the same if
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In recent times some ideas have become redundant and politically incorrect. Most incoming students in the universities stand in long queue to get admission into the universities for the courses that have been closed for hours before they arrived.
An increase of school tuition should not affect the enrolment for it to increase school revenue. However, you find that even though the increment are within the margins of the tuition that other universities offer, students who are in the lower earning profile will be greatly affected even with minimal increment.
However, in this paper we are going to focus on the institution of higher learning as a basic business enterprise that note only serves to provide education to the masses but is also out to make to generate income from the variety of services it offers within its line of duty.
This has been coupled by the fact that there has been a marked increase in tuition university fees consequently resulting in increased debt loads for recent graduates and current students. The issue has therefore generated heated debate concerning whether the government should pay or should not pay for all students.
Tuition fee, however, comprises only a part of the cost of higher education. There is a huge disparity in the role of the government in higher education across countries and across universities in the same country. In the Scandinavian countries, no
High college tuition limits the accessibility of higher education and this is an important reason why it remains controversial. The following essay will explore the reasons why tuition should be low. Since lower tuition
The condition by which the revenue of NSU rises is not that impossible to take place, because this eventually adds up to the existing collection that the academic institution normally gets from the tuition fees.
The cost of education on the other hand has been increasingly trending upwards thus placing more burden on parents and students. The government has come in handy especially for the poorest families through programs such subsidised
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