1.3. Please explain whether the following statements are true or false. a. If the owner of a...

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1.3. 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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Microeconomics

ISBN: 9780132080231

7th Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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