Asked by Annalisa Recchia on Sep 24, 2024
If a firm decides to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain permission to reduce price below a specific threshold,and the manager only has one source of information,the sales agent,the solution would
A) Work
B) Not work
C) Work in all circumstances
D) None of the above
Aggressive Pricing
A competitive strategy involving setting lower prices than rivals to gain market share quickly.
Sales Agents
Individuals or companies that act on behalf of another party in the selling process, often receiving a commission or fee for their services.
Permission
The authorization or approval given by one party to another, allowing them to take a specific action or perform a certain task.
- Assess the impact of agency conflicts, specifically adverse selection and moral hazard, on the functioning of businesses.
- Understand the principles of monitoring and controlling employee performance in various work environments.
Learning Objectives
- Assess the impact of agency conflicts, specifically adverse selection and moral hazard, on the functioning of businesses.
- Understand the principles of monitoring and controlling employee performance in various work environments.