Solved: Abc company pays members of its sales force commissions, Microeconomics

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Abc company pays members of its sales force commissions

Question: ABC Company pays members of its sales force commissions based on their dollar volumes, but XYZ Company pays its salespeople fixed monthly salaries. What characteristics of the company, its market, or the product it produces might make monthly salaries a good choice for XYZ but a poor choice for ABC?

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Microeconomics: Abc company pays members of its sales force commissions

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