Managerial Economics Week 10 Individual Work Assignment

Managerial Economics Week 10 Individual Work - Assignment Example User charges get money from people and business in terms of charging the benefits they receive. Examples include charges in Laundromats, soda from vending machines, iTunes, pay-per-view movies on cable TV, and Netflix Course offered in higher education institutions vary in terms of depth and quantity of course materials and requirements. Some courses are more demanding than others depending on the depth of the curriculum and student involvement. On this note, some courses may need more resources in order to meet the learning objectives and outcomes. Such variability in courses would affect the amount of pricing set by higher education institutions. It is logical for students pursuing courses that are more demanding with regard to resources to pay more for the extra load their courses are using. Most universities therefore charge different fees for different courses depending on the level of involvement and resources that particular course requires. The approach seems to be fair to students and most importantly, to the university in terms of resource management. There are different types of funding approaches universities and other institutions of higher learning can adopt (Barr, 2004). Other than pricing schemes that charge different fees for different courses, other institutions charge the same fees to all students. Such a pricing approach may be burdensome to some students and on the other hand be lenient to others. The difference between the two types of students varies depending on income distributions. Due to varying income distributions and inequalities, some students may find it easy to pay the fees while other may struggle with the fees. Since the fees are standard for all students regardless of their family incomes, this type of pricing scheme may not be fair to students with low family incomes. On the contrary, the same pricing scheme may not be high for student from families