16. If accounting profits are positive and economic profits are negative in the long run, the

proper strategy is to

[1] monitor the situation closely and leave the business the minute accounting profits

start to decline.

[2] feel satisfied because, in the long run, accounting profits will average zero.

[3] go back and recalculate figures, because accounting profits can never be more

than economic profits.

[4] close down the business and shift the resources to more profitable ventures.