ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Phyllis and her employer, Fred, know that she can generate $200,000 of profit per year for his company. After negotiations, they agree that Phyllis will earn $110,000 in annual compensation. What does this imply for the value of her outside or next best alternative?
$5,000
$10,000
$20,000
She doesn’t really have another opportunity because she settled for way too little.
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