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Carlos Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements?
Consumer Surplus
The discrepancy between the total sum consumers are prepared and capable of spending on a product or service and what they end up spending.
Consumer Surplus
The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.
Willingness to Pay
The maximum amount an individual or entity is willing to pay for a good or service, reflecting its perceived value.
Marginal Utility
The additional satisfaction or benefit gained from consuming one more unit of a good or service.
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