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
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.
Step by Step Solution
3.32 Rating (170 Votes )
There are 3 Steps involved in it
a True Since there is no monetary transaction there is no accounting or explicit cost However since ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
701-B-E-M-E (5534).docx
120 KBs Word File
