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Philip owns and operates a gas station.Philip works 40hours a week managing the station but does not draw a salary.He could earn $800 a week
Philip owns and operates a gas station.Philip works 40hours a week managing the station but does not draw a salary.He could earn $800 a week doing the same work for Terrence.The station owes the bank $100,000 and Philip has invested $50,000of his own money.If Philip's accounting profits are $1,000per week while the interest on his bank debt is $300 per week, what are his economic profits?
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