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​A Shoe Salesman Working on Commission Must Decide Whether to Work

Question 3

Multiple Choice

​A shoe salesman working on commission must decide whether to work hard or shirk.Working hard would increase the probability of a sale from 20% to 70% but the effort would cost him $5.If the typical commission on a pair of shoes was $8,would he decide to work hard?


A) ​Yes because it is higher than what it costs him in effort
B) Yes because it is higher than zero
C) No,because it costs him more in effort
D) ​None of the above

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