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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
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.
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