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Microeconomics for MBAs 49. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 14 Business Regulation 24 Private schools face serious competition attracting customers. They have to cover their costs of educating students with tuition payments from parents who have the option of sending their children to public schools they have already paid for with taxes. Obviously private schools have to treat their customers well if they are to survive. But some of the most successful private schools recognize that treating their customers well as a group can require mistreating them individually. In many respects the education of children is a collective enterprise in which the best results require that all customers be required to do things that many would not voluntarily choose to do. Consider the example of a private school in Nanuet New York that has done very well in part because it has come up with a creative way of mistreating its customers. Love Christian Academy requires that all the parents have monthly meetings with their children s teachers and volunteer to work at the school at least one day a year. If parents miss or are even late for a meeting they are fined 100. Parents who are fined or who must attend a meeting on the night of their favorite TV programs to avoid the fine often feel mistreated. One parent was quoted as not pleased with being fined for violating one of the rules and some parents have removed their children from the school because of the strict rules. But the school thrives because most parents feel more than compensated by knowing that their children are attending school with other children whose parents are actively involved in their education.11 Similarly few parents want their children spanked at school. But if the choice is between sending their children to a school where none of the students are spanked or to one in which any student who misbehaves is spanked including their own many parents prefer the latter. This is recognized by many private schools that advertise the fact that they believe in maintaining .
