A Good Salesperson Can Sell $200,000 Worth of Goods,while a Poor

question 72

Multiple Choice

A good salesperson can sell $200,000 worth of goods,while a poor one can sell only a smaller amount worth of goods.Job applicants know if they are good or bad,but the firm does not.A firm will offer job applicants a choice between a fixed salary of $20,000 or a 20% commission.Assume risk-neutral salespersons and no opportunistic behavior.Given that the firm wants to distinguish a prospective good salesperson from a poor one,what should be the sales amount of a poor salesperson?

• A) more than $150,000
• B) less than $100,000
• C) more than $100,000
• D) $100,000

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Definitions:

Decertification Election

A process wherein workers vote to remove the representation of an existing union, essentially ending its authority to negotiate on their behalf.

Union Leaders

Individuals elected or appointed to represent and guide a labor union, managing negotiations and strategic decisions on behalf of its members.

Neutral Third Party

An independent entity not involved or favoring any side in a disagreement or dispute, often used to facilitate negotiations or mediate conflicts.

Employer Misconduct

Unethical or illegal actions taken by employers, such as violating labor laws or mistreating employees.