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What is weekly economic profit

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John works 40 hours a week managing his own business without drawing a salary. He could be earning $800 a week doing the same job for his former employer. He sunk $100,000 of his own money into the business which had been earning 0.002% interest per week. He also borrowed $100,000 from a bank and owes $200 a week in bank debt. If John's weekly accounting profit is $1,000 per week, what is his weekly economic profit? Was this a good decision for John?

Reference no: EM131928189

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