Which of the Following Arguments Opposes the Idea of High

question 39

Multiple Choice

Which of the following arguments opposes the idea of high executive pay?

• A) High salaries provide an incentive for innovation and risk taking.
• B) Not many individuals are capable of running today's large, complex organizations.
• C) Top athletes and entertainers make a lot of money, so top executives should, too.
• D) High salaries divert resources that could be used to invest in the business.

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Definitions:

First Mover

A business strategy where a company is first to enter a specific market or industry, potentially gaining a competitive advantage in brand recognition, customer loyalty, and more.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, resulting in no incentive to deviate.

Dominant Strategy

A strategy in game theory that is considered the best response regardless of what any other players do, providing the most advantageous outcome for a player.

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the other players remain unchanged.