As with current university pricing schemes, proponents of full-cost pricing generally argue for a standard fee (albeit higher than at present) for all students. Standard-fee proposals ignore relative cost and demand differences among activities in the university.
Discuss several possible rationales for charging different prices for different courses of study.
What are the income-distribution effects of a pricing scheme that charges the same fee to all students?
If universities adopted a system of full-cost (or marginal cost) pricing for various courses, what would you expect the impact on the efficiency of resource allocations within the university to be?
Would you complain less about large lecture sections taught by graduate students if these were priced significantly lower than small seminars taught by outstanding scholars?
What problems could you see arising from a university that adopted such a pricing scheme?
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