摘要:Abstract This paper considers the use of a university cost function to examine the costs and revenues of overseas students in Australia and to estimate the unobservable cost of providing education for only domestic students. The total costs (over all universities) of overseas students are found to be sensitive to variations in the cost function. The sensitivity of the specification of the cost function, particularly in terms of its nonlinearity, is examined. The paper also discusses the use of simple pricing rules for overseas students, since the standard pricing rules from the theory of the firm no longer apply.