54 638
Assignments Done
98,2%
Successfully Done
In November 2017
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Microeconomics Question for Ash

Question #41075
Firms often pay managers a percent of profits to encourage them to work longer hours for the company. Managers are often conflicted by the desire for extra income and the reduction of leisure time for family and personal enjoyment. Consider the following example. When the manager is paid a salary of $100,000 without a share of profits, she spends the minimum required time at work and maximizes her leisure time. When the manager is paid $100,000 plus a small percent of profits she increases the time spent at work. Her average income increases to $120,000.
Can you tell from this example whether the manager has shown a preference for the second compensation scheme? If so, has the company benefited from the second compensation scheme?
Expert's answer
As we can see from this example, the manager has shown a preference for the second compensation scheme, becouse his amount of income now depends on his activity and the profits of the company. So, the company benefited from the second compensation scheme, because its profits will rise, as the manager spends more time to work harder to receive the higher income.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question