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[QUOTE="CL82, post: 3227036, member: 44"]
Let me see if I can explain this to you in a way that resonate with you.  You have a college.  It has building that it need to maintain.  It has faculty that needs to be paid for.  It has non-faculty employees it needs to pay for.  It has utlities expenses, etc.  Now lets say that your cost for all of that, for purposes of this example is $100.  Let's say you have to spread the cost over a single class of 10 people who are in a classroom that seats twenty.  You want to breakeven, so you charge each student $10.  $10 x 10 = $100.  You are at breakeven.  Another student decides to join the university. He pays for his own books and materials.  The prof is already paid, as are the room and electricity and support staff etc.  What is the marginal cost to the university of having this student sit in the room?  Well in my example it is $0.

I fully understand that if you divide your total costs by your total students you will get a per student number.  That's not your marginal cost to add the student.

Make sense?
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