Question

If you own a company and you don’t pay yourself a salary, your labor does not enter the total economic cost of production for the firm. true or false? group of answer choices

a.True
b.False

Answer 1

False. Even if you don't receive a salary, there is an opportunity cost associated with your labor, which should be included in the total economic cost of production.

Step-by-step explanation:

False. When you own a company and do not pay yourself a salary, your labor still enters the total economic cost of production for the firm. Even if you don't receive a salary, there is an opportunity cost associated with your labor. This opportunity cost represents the salary or wage you could have earned in an alternative job. Therefore, your labor should be included in the total economic cost of production.