Peter, the owner of a firm, pays his salesperson, Ann, a commission on her sales (revenue). Thus,

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Peter, the owner of a firm, pays his salesperson, Ann, a commission on her sales (revenue). Thus, Ann has an incentive to maximize revenue. The graph shows how revenue and profit vary with output. Show that if she succeeds in maximizing revenue, she does not maximize the firm's profit.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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