Question: Please explain whether the following statements are true or false. a) If the owner of a business pays himself no salary, then the accounting cost

Please explain whether the following statements are true or false.
a) If the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive.
b) A firm that has positive accounting profit does not necessarily have positive economic profit.
c) If a firm hires a currently unemployed worker, the opportunity cost of utilizing the worker’s services is zero.

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a True Since there is no monetary transaction there is no accounting or explicit cost However since ... View full answer

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