« previous next »

Author Question: People often complain bitterly when they learn that CEOs of non-profit companies like the United Way ... (Read 25 times)

tatyanajohnson

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
People often complain bitterly when they learn that CEOs of non-profit companies like the United Way or the Red Cross earn salaries commensurate to what could be earned in by CEOs employed by for-profit companies? Is this complaint valid? Explain.
 
  What will be an ideal response?

Question 2

What happens when a firm encounters diminishing returns? What causes diminishing returns?
 
  What will be an ideal response?


emily12345

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 29, 2018
Answer to Question 1

When non-profit companies are looking for CEOs they often have to look for them in both the ranks of the non-profits and profit-making firms as well. In order to be competitive their offers often must be in line with what they can earn elsewhere. In other words, they have to be paid their opportunity cost.

Answer to Question 2

The firm encounters diminishing returns when the marginal product of variable inputs declines. This occurs because other inputs are unchanged in the short run.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Alan Price - Poor People Alan Price - Poor People
In the 1800s, most people were poor, and formal education beyond the first several grades was a ... In the 1800s, most people were poor, and formal education beyond the first several grades was a ...
Children’s interactions with older siblings may help promote an understanding of other people’s ... Children’s interactions with older siblings may help promote an understanding of other people’s ...
Of four outcomes people can have after exposure to trauma, the most prevalent is resilience. Others, ... Of four outcomes people can have after exposure to trauma, the most prevalent is resilience. Others, ...
Video: Epidural Hematoma

For a complete list of videos, visit our video library