Economic Homework $10.00

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?

• 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?
• Using regression analysis, where labor is the "X" variable,  find the best production equation to estimate total output.