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<p>Cornell2011, we’ll have to agree to disagree. The average total cost of each student will go down just because there are a greater number of students (but that is not what matters- total cost to the entire university is what matters):</p>
<p>Average total cost = Total cost to the university divided by the #of students</p>
<p>Because the number of students is high, the numerical fraction above is small. Yes the average total cost per student goes down, but the total cost to the university as a whole will remain the same so there is no monetary benefit to the university. Now if they could lower the total cost to the university, that would be a different story. Maybe I am just misinterpreting what you’re saying.</p>
<p>None of the tuition money goes towards defraying the total cost to the entire university if the marginal cost of admitting another student is equal to the tuition that they pay, and the total cost to the entire university is what really matters. The average cost per student is only small because there are so many students- in my opinion average cost per student does not really mean much. Total cost to the university is what matters.</p>