If Good Salespeople Are Extremely Risk Averse,then a Choice Between

question 103

Multiple Choice

If good salespeople are extremely risk averse,then a choice between a fixed-fee contract and a contingent contract

• A) avoids a moral hazard.
• B) will result in all job candidates choosing the contingent contract.
• C) will result in an efficient contract.
• D) may not be a good screening device.