Question 3. Ali must decide whether to start a business renting beach umbrellas at an ocean resort during Juno July, and

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Question 3 Ali Must Decide Whether To Start A Business Renting Beach Umbrellas At An Ocean Resort During Juno July And 1 (31.47 KiB) Viewed 78 times

Question 3. Ali must decide whether to start a business renting beach umbrellas at an ocean resort during Juno July, and August of next summer. He believes he can rent cach umbrella to vacationers at $6 a day, and he intends to lease (borrow) 65 umbrellas for the entire three- month period for $7,500 in total. To operate this business, he does not have to hire anyone (but himself), and he has no expenses other than the leasing costs and a fee ofss,200 per month to rent the business location. Ali is a college student, and if he did not operate this business, he could earn $4,300 for the three month period doing construction work a. If there are 85 days during the summer when beach umbrellas are demanded and Ali rents all 65 umbrellas on each of these days to vacationers, what will be his accounting profit for the summer? [7 marks) 1. What will be his economic profit for the summer? [3 marks]