Currently, the tuition for a state college student includes a fixed annual charge of $50.00 for printing in the computer labs, and students are allowed to print as many pages of material as they want. The average student prints 1,000 pages anuually under this method. The business office at the school is considering changing to a "per page" system where ther is no annual fee included in tuition but each page printed will cost $0.05. a. What effect will the "per page" system have on the amount of pages printed annually at the state college as compared to the current system? b. Under the $50.00 fixed annual charge, James only printed 800 pages annually. Given the new system of charging $0.05 per page, is James likely to print fewer pages?

Currently, the tuition for a state college student includes a fixed annual charge of $50.00 for printing in the computer labs, and students are allowed to print as many pages of material as they want. The average student prints 1,000 pages anuually under this method. The business office at the school is considering changing to a "per page" system where ther is no annual fee included in tuition but each page printed will cost $0.05. a. What effect will the "per page" system have on the amount of pages printed annually at the state college as compared to the current system? b. Under the $50.00 fixed annual charge, James only printed 800 pages annually. Given the new system of charging $0.05 per page, is James likely to print fewer pages?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 13E

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