Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If accounting profits are positive and economic profits are negative in the long run, the proper strategy is to 1) monitor the situation closely amd

If accounting profits are positive and economic profits are negative in the long run, the proper strategy is to

1) monitor the situation closely amd leave the business the minute accounting profit 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 resource to more profitable ventures

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a business risk appraoch

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

6th Edition

9780324645095, 324645090, 978-0324375589

Students also viewed these Economics questions

Question

What, if any, financial support do they provide their students?

Answered: 1 week ago