The purpose of this study was to analyze the relationship between the educational expenditures and economies of scale in institutions of higher learning. Therefore, the following objectives were established.
1) To examine economics of scale in instit...
The purpose of this study was to analyze the relationship between the educational expenditures and economies of scale in institutions of higher learning. Therefore, the following objectives were established.
1) To examine economics of scale in institutions of higher learning and the determinant of educational cost.
2) To estimate optimum educational cost through analysis of educational cost in institutions of higher learning.
3) To explore methods of improving tuition and fee system in institutions of higher learning.
To accomplish the above objectives, this study focused on the examination of relevant literature. On the basis of this analysis, the following conclusions might be drawn.
First, if the economies of scale in economics are applied to institutions of higher learning, the cost of production corresponds to educational cost and the output corresponds to students. In this sense, the economies of scale will be of great value in examining the optimum scale of institutions of higher learning.
Second, educational cost is the main factor in determining the scale of institutions of higher learning. Therefore, the determinant of educational cost scale should involve personnel expenses, operation cost, and facility's expenditures. Through a detailed analysis of this, a plan should be considered with the objective of minimizing total educational cost.
Third, the current tuition and fee system determines educational cost without regard for differences in fields of study or the total number of credits. These could be areas where improvement over the current tuition and fee system may be found.