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A Salesperson for a Company That Installs Local Area Networks

question 114

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A salesperson for a company that installs local area networks (LANs) spends about 25 per cent of her time actually selling the product,and about 75 per cent of her time installing the computer systems,training customer employees in their use and troubleshooting.Which sort of compensation is most likely to keep Emma satisfied with her job?


Definitions:

Reservation Price

The maximum price a buyer is willing to pay or the minimum price a seller is willing to accept for a good or service.

Utility Function

A mathematical representation of how different bundles of goods or services affect an individual's level of satisfaction or happiness.

Reservation Price

The maximum price a consumer is willing to pay for a good or service, beyond which they will not make a purchase.

Utility Function

A model that assigns numerical values to different bundles of goods, reflecting the satisfaction or utility these bundles provide to a consumer.

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