Paying salespeople a fixed wage contract, one in which income does not depend on the volume of sales, avoids
A) both adverse selection and moral hazard.
B) neither adverse selection nor moral hazard.
C) adverse selection but not moral hazard.
D) moral hazard but not adverse selection.

Question

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The Answer of Paying salespeople a fixed wage contract, one in which income does not depend on the volume of sales, avoids
A) both adverse selection and moral hazard.
B) neither adverse selection nor moral hazard.
C) adverse selection but not moral hazard.
D) moral hazard but not adverse selection.

Paying Salespeople a Fixed Wage Contract, One in Which Income