Will the sales force and warehouse manager maximize, Ask an Expert

Economics

Your professor used to work at a national chain of retail swimming pool stores, which pays it's sales force a bonus based on sales (ie a commission). It also pays it's warehouse manager a bonus inversely related to the rm's inventory.

a. Will the sales force and warehouse manager maximize prots? If not, give an ex of a decision the sales force and/or warehouse manager might make that does not maximize prots.

b. Can you predict the problem that arose from this system?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M951297

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