Total Posts:7|Showing Posts:1-7
Jump to topic:

Non-profit organization

darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 6:55:03 AM
Posted: 6 years ago
Already, can somebody answer me this question? Why are there a lot of successful non-profit organizations (ex: Mozilla Firefox, wikipedia, most college and universities). In economics, the 'best' and most 'efficient' goods and services are the most profitable. Therefore, a for-profit organization should have the most incentive to create the best and most efficient goods. However, this is not the case, as shown above. Can someone please explain?
Open borders debate:
http://www.debate.org...
innomen
Posts: 10,052
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 7:22:03 AM
Posted: 6 years ago
At 11/4/2010 6:55:03 AM, darkkermit wrote:
Already, can somebody answer me this question? Why are there a lot of successful non-profit organizations (ex: Mozilla Firefox, wikipedia, most college and universities). In economics, the 'best' and most 'efficient' goods and services are the most profitable. Therefore, a for-profit organization should have the most incentive to create the best and most efficient goods. However, this is not the case, as shown above. Can someone please explain?

First, i was unaware that Mozilla Firefox was non profit. Second they are able to get subsidies, grants, and best of all, they don't have to pay taxes! They also don't have to answer to stock holders and really don't have to worry about making a profit as a component of success. It's a sweet deal if you can pull it off. Although i heard ACORN declared bankruptcy :-))))).
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 7:39:25 AM
Posted: 6 years ago
At 11/4/2010 7:22:03 AM, innomen wrote:

First, i was unaware that Mozilla Firefox was non profit. Second they are able to get subsidies, grants, and best of all, they don't have to pay taxes! They also don't have to answer to stock holders and really don't have to worry about making a profit as a component of success. It's a sweet deal if you can pull it off. Although i heard ACORN declared bankruptcy :-))))).

So, let's say that we lived in a completed free-market economy. Would they still be able to be successful, since grants and not having to pay taxes are two ways the government gets involved.
Open borders debate:
http://www.debate.org...
innomen
Posts: 10,052
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 10:02:40 AM
Posted: 6 years ago
At 11/4/2010 7:39:25 AM, darkkermit wrote:
At 11/4/2010 7:22:03 AM, innomen wrote:

First, i was unaware that Mozilla Firefox was non profit. Second they are able to get subsidies, grants, and best of all, they don't have to pay taxes! They also don't have to answer to stock holders and really don't have to worry about making a profit as a component of success. It's a sweet deal if you can pull it off. Although i heard ACORN declared bankruptcy :-))))).

So, let's say that we lived in a completed free-market economy. Would they still be able to be successful, since grants and not having to pay taxes are two ways the government gets involved.

If we lived in a completely free-market economy they wouldn't be able to exist at all. To sustain themselves they would need to break even to be "successful" they would need profit to invest in growth and what not. They would need to be profit oriented and thus not be a non-profit organization. NPR would need to change their entire business model and care about ratings because they would need to get sponsors and then they would have to market themselves more effectively. The more people that listen to them the more sponsors at higher amounts could they bring on to support them, and profits would increase if they were successful in marketing themselves. Or.....more likely......they would go bust.
I-am-a-panda
Posts: 15,380
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 12:22:03 PM
Posted: 6 years ago
At 11/4/2010 6:55:03 AM, darkkermit wrote:
Already, can somebody answer me this question? Why are there a lot of successful non-profit organizations (ex: Mozilla Firefox, wikipedia, most college and universities). In economics, the 'best' and most 'efficient' goods and services are the most profitable. Therefore, a for-profit organization should have the most incentive to create the best and most efficient goods. However, this is not the case, as shown above. Can someone please explain?

Because goods\services like that prevail and have high demand when the price is 0 compared to similar products with a price greater than 0. Why subscribe to an encyclopaedia website when I have Wikipedia for free?

Institutions such as NRP's often look better when they loiek they're not in it for a profit, and many NRP's do receive some government funding keeping them afloat. A good example is college, many who rely on government funding on top of student fees to stay afloat, but of course have no reason to operate on a profit basis.
Pizza. I have enormous respect for Pizza.
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
11/4/2010 9:34:22 PM
Posted: 6 years ago
At 11/4/2010 12:22:03 PM, I-am-a-panda wrote:

Because goods\services like that prevail and have high demand when the price is 0 compared to similar products with a price greater than 0. Why subscribe to an encyclopaedia website when I have Wikipedia for free?

The price is rarely zero for these goods and services. College is non-profit yet it is not free. Only a small supply of workers will work for free. In order to increase the supply of workers, one must increase the money for workers (basic supply). College professors will certainly not teach for free. Also for exclusive goods (ex: education), if a product is free then certainly there will be a demand in which there will be a higher demand then supply, creating a shortage.
Open borders debate:
http://www.debate.org...