Peter was recently hired as a salesman for a national consulting firm. His job involves spending a significant portion of his time out of the office visiting prospects and attending conferences. Which of the following is a strategy the consulting firm may employ to discourage Peter from shirking his responsibilities?
A) Tell Peter that the shareholders want to earn a large profit this year.
B) Stop paying Peter bonuses based on how much he's sold.
C) Allow Peter to set his own schedule and work from home frequently.
D) Pay Peter an above-equilibrium wage.
Correct Answer:
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