Question: Use a cost-and-revenue graph to illustrate and explain the initial short-run profits in the video rental business in monopolistic competition. Then, use a second graph

Use a cost-and-revenue graph to illustrate and explain the initial short-run profits in the video rental business in monopolistic competition. Then, use a second graph to illustrate the long-run situation. Explain fully.

Dollars per Unit MC per Unit MC P2 ATC ID AR MR Quantity D AR 9 42 Quantity

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