Abstract
The creation of quality e-learning material creates a cost dilemma for many institutions, since it has both high variable and high fixed costs. This cost dilemma means that economies of scale are difficult to achieve, which may result in a consequent reduction in the quality of the learning material. Based on the experience of creating a masters level course at the UK Open University, the article suggests that the adoption of learning objects represents one possible resolution to this dilemma. They achieve this through the reduction of the fixed costs by four means: reuse, rapid production, ease of updating and cost-effective pedagogy.
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