A Comparison of the Marginal Cost of Commissioning Officers through the U.S. Naval Academy, Naval Reserve Officers Training Corps, and Officer Candidate School
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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This thesis calculates and compares the marginal cost of graduating a naval officer from the United States Naval Academy USNA, Naval Reserve Officers Training Corps NROTC, and Officer Candidate School OCS. After defining the variable and fixed cost functions for each commissioning source, the total cost, average cost, and marginal cost per graduate are calculated for fiscal year 1989 graduates. Compared to average cost, the marginal cost per Academy graduate is more in line with the marginal cost per graduate for NROTC, and OCS. The results support the conclusion that a majority of the Naval Academys costs are fixed in the short-run and that savings realized by reducing the number of graduates would be overstated by using average cost. This thesis recommends using marginal cost to estimate savings from reductions in officer accessions in the short-run.
- Economics and Cost Analysis
- Humanities and History
- Personnel Management and Labor Relations