Author Question: If the university administration plans to cut tuition charges in the hope of attracting more ... (Read 74 times)

soccerdreamer_17 · **on:** Jun 29, 2018

If the university administration plans to cut tuition charges in the hope of attracting more students and thereby increasing tuition revenues, we know

A) they are assuming an elastic demand.
B) they are assuming an inelastic demand.
C) they cannot succeed because of the law of demand.
D) they must be running in the red.
E) they will only succeed if more students can be enrolled at no cost.

Question 2

Under earnings-sharing regulation, if a firm's profits ________ above a certain level, they must be shared with the firm's ________.

A) rise; customers
B) fall; customers
C) rise; suppliers
D) fall; suppliers
E) rise; competitors