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    Managerial Economics and Business Strategy Study Set 1
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    Exam 6: The Organization of the Firm
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    Suppose a Firm Manager Has a Base Salary of $175,000
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Suppose a Firm Manager Has a Base Salary of $175,000

Question 125

Question 125

Multiple Choice

Suppose a firm manager has a base salary of $175,000 and earns 0.5 percent of all profits.Determine the manager's income if revenues are $10,000,000 and profits are $5,000,000.


A) $150,000
B) $200,000
C) $225,000
D) $300,000

Correct Answer:

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