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Question about Cost types
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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