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Cost types

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1. What marginal costs do Universities incur by offering more than one of the same classes? What marginal revenues do Universities earn from each additional class? How would you expect this marginal analysis to affect the volume of classes the Universities offers? Does Universities maximize profits?

2. How would you describe the balance between the costs of automation, or fixed costs, and the costs of labor, or variable costs? How has technology changed the balance between automation and labor? What type of industry benefits the most from technological innovation?

3. Choose an organization that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage?

4. What opportunity costs do you confront by enrolling in a MBA program? Does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities? For your organization, are opportunity costs fixed costs, variable costs, both, or neither?

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Economics

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1. What marginal costs do Universities incur by offering more than one of the same classes? What marginal revenues do Universities earn from each additional class? How would you expect this marginal analysis to affect the volume of classes the Universities offers? Does Universities maximize profits?
When a university offers more than one of the same class it incurs the cost of additional faculty, the use of additional classrooms, the use of equipment in the classrooms, the additional utility costs incurred in the classrooms, and variable administrative costs related to the additional classroom. The extra tuition feels that additional students bring in is the marginal revenues that the university earns from each additional class. This marginal analysis can affect the volume of classes the university offers because the university will continue to increase the number of classes till the marginal cost incurred by the university equals the marginal revenues earned by the university from the additional classes. If the university continues to increase its classes till marginal costs from increasing classes equals the marginal revenues, the university maximizes profits.
2. How would you describe the balance between the costs of ...

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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