Will the firm likely continue operating in the long run

Reference no: EM13201529

Consider the following graph of a monopolistically competitive firm selling DVDs

A. How many DVDs should be sold to rent per day to maximize profit? Briefly explain your answer.

B. What is the economic profit for this firm operating where economic profit is maximized?

C. Will this firm likely continue operating in the long run? Briefly explain your answer.

D. Explain the impact on this firm of other firms leaving the market. Would this action alter your decision made in part C?

Reference no: EM13201529

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