An example of an uncontrollable resource that contributes to diseconomies of scale for a movie theater is
a. concession stand staff
b. public roads congested with traffic
c. volume discounts from movie distributors
d. a single lobby in the theater
e. bigger, more noticeable newspaper ads
Question 2
The fact that since 1990 the number of movie screens in the United States has grown faster than the number of theaters illustrates the benefits of
a. economies of scale
b. constant long-run average cost
c. diseconomies of scale
d. increasing long-run average cost
e. a U-shaped marginal cost curve
