Jim Left His Previous Job as a Sales Manager and Started

Multiple Choice

Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per year, but he now pays himself $25,000 per year while he is building the new business. What is the economic cost of the time he contributes to the new business?

A) $25,000 per year
B) Zero
C) $70,000 per year
D) $45,000 per year