f a firm has negative accounting profits in the short run, it should   Question 10 options:   All other answers are incorrect   Close since accounting profits are negative   Stay open if economic profits are positive   Stay open regardless of economic profits

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Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?