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Can you help with following question. Fred works 40 hours a week managing Fred's Convenience Store, without drawing a salary. He could earn $600 a
Can you help with following question.
Fred works 40 hours a week managing Fred's Convenience Store, without drawing a salary. He could earn $600 a week doing the same work for Bob. Fred's Convenience Store owes its bank $100,000, and Fred has invested $100,000 of his own money. If Fred's accounting profits are $1,000 per week while the interest on his bank debt is $200 per week and savings account interest and loan interest are equal, his economic profits areblank_______.
A $1000 per week
B$400 per week
C$200 per week
D$0 per week
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