3. The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. The companies that employ normal designers each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. The 200th company, however, employs Janus, an unusually talented designer. Because of Janus’s talent, this company collects $1,000,000 in revenue a year. (LO3)

a. How much will Janus earn? What proportion of her annual salary will be economic rent?

b. Why won’t the advertising company for which Janus works be able to earn an economic profit?