Question: Chapter 12: Problems and Applications #3.3, pg. 435.

Use this graph to answer the questions that follow.

a) If the owner of this video store wants to maximize profits, how many DVDs should she rent per day, and what rental price should she charge? Briefly explain your answer,

b) How much economic profit (or loss) is she making? Briefly explain.

c) Is the owner likely to continue renting this number of DVDs in the long run? Briefly explain.