Many people are offended when they learn that the CEO of a charitable organization makes a salary commensurate with a CEO of a private company that is run for profit
Explain why it would be a mistake for charitable organizations to pay their CEOs less than companies that are driven by profit?
It would be a mistake because it would eventually lead to a shortage of CEOs for charitable organizations. Presumably the same types of skill that are required as a CEO for a for-profit company are very similar to the skills required to head up a non-profit firm. If candidates see a significant wage differential they will flock to the one with the higher wage and salary all other things equal.
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In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is
A) perfectly competitive. B) monopolistically competitive. C) equivalent to a monopoly because consumers think the products are different. D) equivalent to an oligopoly because consumers think the products are different.
The market demand curve for labor
A) is the same as the market demand curve for the product labor produces because it is a derived demand. B) is determined by adding up the quantity of labor demanded by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers. C) is perfectly inelastic because there is a finite number of workers in the market for labor. D) is determined by adding up the demand for labor by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers.