Phyllis and her employer know that fred 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?

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.