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Can i get an explanation please . Ty! Fred and his employer both know that Fred can generate $200,000 of profit per year for his

Can i get an explanation please . Ty!

Fred and his employer both know that Fred can generate $200,000 of profit per year for his company. After negotiations, they agree that he will earn $110,000 in annual compensation. What does this imply for the value of his outside or next best alternative?

$0

$5,000

$10,000

Correct!

$20,000

why $20k

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