Characterized by perfect competition

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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.

Reference no: EM131548057

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