Highly Compensated Executives Sometimes Prefer Fringe Benefits Such as Club

question 219

True/False

Highly compensated executives sometimes prefer fringe benefits such as club memberships,company cars,and more vacation time,as opposed to higher salaries because most often these benefits are not taxable income.
Highly compensated executives that pay a higher percentage of their salary in taxes sometimes prefer to receive added fringe benefits rather than higher pay.

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Definitions:

Increasing-Cost Industry

An increasing-cost industry is one in which costs of production increase as the industry expands, often due to factors like limited resources or higher input prices.

Long-Run Supply Curve

A graphical representation showing quantities of goods a firm is willing and able to supply at different prices over a long period, assuming all inputs are variable.

Decreasing-Cost Industry

Industry whose long-run supply curve is downward sloping.

Long-Run Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry over time, accounting for adjustments in all input factors.