If a retailer pays a salesperson a set hourly wage and that salesperson puts forth less effort

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If a retailer pays a salesperson a set hourly wage and that salesperson puts forth less effort and takes longer breaks than if compensation had been tied to performance, is this an example of adverse selection or moral hazard?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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