Economics 101

Davidson, Alex
December 2007
Forbes Asia;12/10/2007, Vol. 3 Issue 21, p92
The article criticizes U.S. colleges for their continued tuition fee hikes. Colleges blame big tuition hikes on rising bills for fuel, health care benefits and salaries and the cost of keeping up with it rival colleges. The article asserts that businesses, though, face the same escalating costs and the same pressure to upgrade their products, but they find ways to avoid raising prices at anything like the same pace. It turns out there is something different about the bills that colleges pay each month. They rise much faster than they do off campus.


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