1. Casey is an expert poker player and can make $35 an hour playing poker online. On Saturday Casey goes to a local tournament with a $15 entry fee. He plays for four hours and wins first place, taking home the $150 prize. Did Casey make an economic profit at the tournament?
2. Indicate whether the following statements are true or false, and then briefly explain your reasoning.
a. It is possible for accounting and economic costs to be equal, but it is never possible for economic costs to be less than accounting costs.
b. It is possible for a firm to show an economic profit without showing an accounting profit.