Fred is a salesman who can sell enough to generate $200,000/year worth of profit for his company.
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Question:
Fred is a salesman who can sell enough to generate $200,000/year worth of profit for his company. He earns only $110,000 in compensation. What is the value of his outside or next best alternative?
a. $0
b. $5,000
c. $10,000
d. $20,000
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