What incentive problems might arise from the arrangement


Problem

FedEx contracts independent truck operators to pick up and deliver its packages and pays them on the volume of packages carried. Why doesn't FedEx buy more trucks and hire more drivers? What incentive problems might arise from this arrangement?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What incentive problems might arise from the arrangement
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