In the previous unit, you learned that the number of students enrolled for a particular course is a critical factor that drives several items of expenditure. This unit considers the impact of a change in student numbers on the total costs of running courses and on the average cost per student.
By the end of this unit, you will be able to:
- graphically illustrate how an increase or decrease in the number of students registered for a particular course affects fixed costs, variable costs, semi-variable costs, total costs and average costs;
- use the Total Costs Equation and explain its significance;
- define economies of sale and explain why they are important;
- use the Average Costs Equation and explain its significance;
- discuss how the costs of an ODL institution compare with those incurred for conventional, school-based education systems;
- suggest at least three ways of reducing average costs.