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Assets and is making an accounting profit

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A firm currently has $100,000 in assets and is making an accounting profit of $8,000. All of the employees are paid a salary. The owner of the business does not work there. Which of the following are true?

I. The firm should continue to operate in the short run

II. The firm should continue to operate in the long run if the normal rate of return is 10%

III. The economic profit is larger than -$92,000

Reference no: EM131994671

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