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John is a car salesman working for a Chevy dealership in Houston, Texas. He receives a base salary of $800/month plus a 10% commission on the price above cost for every car that he closes a deal on.
a. Describe a situation in which this payment structure incentivizes John to behave in ways the company would not find desirable.
b. Based on your above answer, how could the dealership either change their payment scheme or introduce some company policy to incentivize John to behave in a way that is more profitable for the dealership?
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