A Comparison of the marginal cost of commissioning officers through the U.S. Naval Academy, Naval Reserve Officers Training Corps, and Officer Candidate School

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Authors
Strano, Michael A.
Subjects
Advisors
Mehay, Stephen L.
Date of Issue
1990-12
Date
December 1990
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
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 Academy's 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.
Type
Thesis
Description
Series/Report No
Department
Department of Administrative Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
viii, 85 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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