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3. Adam Smith Paper Company is an office paper supply company with sales people who sell its paper to businesses across the region. Adam Smith
3. Adam Smith Paper Company is an office paper supply company with sales people who sell its paper to businesses across the region. Adam Smith Paper Company chooses between paying a sales commission or a fixed salary contract. They must also either provide salespeople a company car or reimburse for miles driven. a. How should Adam Smith Paper Company optimally structure compensation for salespeople, including choosing mileage or company car, in order to maximize profits? Defend your answer. b. Does your answer change if economists forecast a recession and likely decreased business demand for paper? Defend your
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