Sergio leaves his job as a hockey coach to open his own skate sharpening shop at a local rink. Sergio is confident that the skate sharpening business will earn him more than the $500 per week that he earned at his coaching position.

Sergio's business is good; he averages 100 pairs of skates per week, and charges $8 per pair to sharpen skates. He does all of the work himself, but has to pay the rink $150 per week for the lease on the equipment.

Is Sergio better off operatinghis own business?

• Yes, he is earning an economic profit of $800 each week.
• No, he is only earning $150 per week.
• Yes, he is now earning an economic profit of $150 per week.
• No, he should have stayed at the coaching position where he earned $500 per week.