Paying Sales Staff Bonuses Based on the Agents with the Highest

question 31

Multiple Choice

Paying sales staff bonuses based on the agents with the highest, second- and third-highest sales is called a:

• A) strict ranking game.
• B) players event.
• C) tournament.
• D) horse race scheme.

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Definitions:

Marginal Cost

The added expense required to produce one more unit of a product or service.

Fixed Cost

An expense that remains constant regardless of the volume of products or services manufactured or distributed.

Monopoly Profits

The excess profits earned by a monopoly as a result of its ability to set price above marginal costs due to lack of competition.

Duopoly

A market structure dominated by two firms, each of which has significant control over the market price.