Calculation of economic profit


Assignment:

John works 40 hours a week managing his own business, without drawing a salary. He could be earning $600 a week doing the same job for his former employer. He has invested $100,000 of his own money in his business and owes the bank $100,000.  The interest on his bank debt is $200 a week. If John's accounting  profit is $1,000 per week, what is his weekly economic profit.

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Business Economics: Calculation of economic profit
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