question archive John works 40 hours a week managing his own business, without drawing a salary
John works 40 hours a week managing his own business, without drawing a salary
Subject:EconomicsPrice: Bought3
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 economic profit?
1)Consider the production schedule below. Where is the average product of labor maximized and at what point does diminishing marginal product of labor set in?
2)Using regression analysis, where labor is the "X" variable, find the best production equation to estimate total output.
