2. Alex owns a small business teaching tourists how to surf in Waikiki. He earns $20/hour...

 

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2. Alex owns a small business teaching tourists how to surf in Waikiki. He earns $20/hour for providing lessons and works 20 hours per week. He also pays a local surf shop $50 per week in exchange for using their surfboards for his lessons. Al- ternatively, Alex could make $15/hour working for another surfing lesson company and not have to pay to use surfboards. Alex is also thinking about giving up surf lessons so that he can study more and do more surfing on his own. For each of the following, tell whether the statement is true, false, or uncertain, and explain your answer. Your explanation matters more than your specific answer. (a) Alex's accounting profit from his business is $350 per week. (b) Alex's economic profit from his business is also $350 per week. (c) It might make sense for Alex to give up surf lessons to focus more on his studies. (d) If Alex decides to give up 10 hours a week giving surfing lessons so that he can surf on his own, it must be that this willingness to pay to surf is at least $20 per hour. 2. Alex owns a small business teaching tourists how to surf in Waikiki. He earns $20/hour for providing lessons and works 20 hours per week. He also pays a local surf shop $50 per week in exchange for using their surfboards for his lessons. Al- ternatively, Alex could make $15/hour working for another surfing lesson company and not have to pay to use surfboards. Alex is also thinking about giving up surf lessons so that he can study more and do more surfing on his own. For each of the following, tell whether the statement is true, false, or uncertain, and explain your answer. Your explanation matters more than your specific answer. (a) Alex's accounting profit from his business is $350 per week. (b) Alex's economic profit from his business is also $350 per week. (c) It might make sense for Alex to give up surf lessons to focus more on his studies. (d) If Alex decides to give up 10 hours a week giving surfing lessons so that he can surf on his own, it must be that this willingness to pay to surf is at least $20 per hour.

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a Alexs accounting profit from his business is 350 per week This is true Alexs accounting profit is ... View the full answer