Answer to Question #24796 in Microeconomics for Dileesha Jayahansani

Question

What are value added, non value added but essential, non value added(waste) activities of an university?

Answer 1

Value added activities are: payments for education, publications of books, articles, magazines, new patents, new developments, technologies, methods of production..
Non value added but essential are: all steps of educating students, maintenance of buildings, laboratories, research centers.
Waste activities: costs for useless researches, bonuses for deans and other administrative persons.