A commission-paid shoe salesman must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 40% but would cost him $20 . If the salesman is paid a $40 commission per sale and a $20 fixed salary and is under monitoring where he would get fired if he doesn't work hard, what would he choose to do?
a. Work hard
b. Shirk
c. Walk away from the job
d. None of the above
a
You might also like to view...
Consumer’s surplus is the difference between the worth of a commodity to the consumer and the price the consumer pays for the commodity.
Answer the following statement true (T) or false (F)
In the Keynesian consumption function, if current income is equal to zero, consumption spending is equal to ________
A) the marginal propensity to consume B) the average propensity to save C) autonomous consumption D) exogenous consumption
Table 34-2 ? ? Output per Unit Labor Input ? England Portugal Cloth 20 24 Wine 2 12 Using the data from Table 34-2, suppose England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit from cloth to wine. The combined production of wine and cloth will be increased by
A. 16 wine, 8 cloth. B. 16 wine, 16 cloth. C. 12 wine, 12 cloth. D. 8 wine, 16 cloth.
Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. What is the expected value of the game?
A. -$12 B. $0 C. $8 D. $32