Industry x is characterized by perfect competition so every


Are the following statements true or false? Explain your answer.

1. If the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive.

2. A firm that has positive accounting profit does not necessarily have positive economic profit.

3. Industry X is characterized by perfect competition, so every firm in the industry is earning zero economic profit. If the product price falls, no firms can survive.

Solution Preview :

Prepared by a verified Expert
Business Economics: Industry x is characterized by perfect competition so every
Reference No:- TGS02343607

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)