Hi Tutor

which is the least likely outcome for a firm enjoying a monopoly in an industry that has a continually falling long-run average cost curve?

1. the government regulates the firm as a monopoly
2. buyers find ways to acquire a non-monopoly price from the producer by having a group purchasing agent to do the buying
3. the firm charges a monopoly price and goes unchallenged
4. buyers contract with a new producer to provide a market in exchange for a less than monopoly price or the fear of this possibility keeps the monopolist from profit maximizing

and then, 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