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Suppose compensation is given by W = 400,000 + 250 + 50S, where W = total compensation of the CEO, = company profits (in millions)
Suppose compensation is given by W = 400,000 + 250 + 50S, where W = total compensation of the CEO, = company profits (in millions) = $340, and S = sales (in millions) = $700. What percentage of the CEO's total earnings is tied to sales of the firm?
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
