> Actually, while we're at it, if we have a choice between an excellent and a mediocre professor, why don't we take the mediocre guy for less money and spend the difference on marketing? That's a sound business decision, because it will lead to more profit.
Profit is at most 10% of revenues. Why do you assume that that 10% has more effect than the 90% that goes to expenses?
In fact, non-profits are notoriously lax wrt expenses. They often cost more to deliver the same services.
Which reminds me, why are you assuming that it's better to spend 2x as much on an "excellent" professor? Sure, it's great for the folks in her class, but what about the folks who don't get to take a class because you spent all your money on excellence?
Or, if you like, what about the folks who can't afford that class because you spent so much on the professor.
Profit is at most 10% of revenues. Why do you assume that that 10% has more effect than the 90% that goes to expenses?
In fact, non-profits are notoriously lax wrt expenses. They often cost more to deliver the same services.
Which reminds me, why are you assuming that it's better to spend 2x as much on an "excellent" professor? Sure, it's great for the folks in her class, but what about the folks who don't get to take a class because you spent all your money on excellence?
Or, if you like, what about the folks who can't afford that class because you spent so much on the professor.