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Ku Owns a Company and Wants Sales to Increase

Question 72

Multiple Choice

Ku owns a company and wants sales to increase. She implements a bonus pay system for the sales team at her company where workers receive extra compensation for sales beyond a set minimum expectation. This is an example of solving a moral hazard problem by


A) providing complements to support the actions you want.
B) making hidden activities observable.
C) using social norms to align incentives.
D) giving people a stake in the outcome.

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