Over the decades, public universities have generated their funding from multiple different sources. These sources include funding by the statues, tuition, and philanthropy work, auxiliary service such as housing and cafeteria services and contracts and grants from the government and other institutions (Renehan, 2015). All these sources of revenue collectively enable a university to run, giving its students the best possible education as well as the best social services. Over the years, however, some of the revenue generated from these sources has drastically declined, especially funding from the state governments, forcing the universities to find other ways of generating enough capital to run the institution. The best method that universities can use to increase their revenue is to increase the tuition that students pay. This why Nobody State University (NSU) chooses this method as a way of increasing revenue for the institution. …show more content…
Research has shown that a university increasing its tuition means that getting an education in that institution is expensive, will increase the number of people who enroll at the school (Renehan, 2015). The theory behind this theory is that degrees from expensive universities will warrant better pay when a graduate is searching for a job, as compared to the person who went to a less expensive university (Renehan, 2015). For the university, this will mean a direct increase in the revenue that the school generates. Increase in the money that the university can spend means that the administration can spend money on the university’s infrastructure and make NSU a sought after university due to their first class facilities. They will also be able to hire the best educators available, hence the quality of education that NSU offers will be a higher caliber, making NSU more attractive to prospective