A growing trend among apartment developers in large cities is to construct buildings with fewer, or no, parking spaces and smaller kitchens. The goal is to attract millennials who may choose to forgo a car and cooking at home. In exchange, developers are adding other amenities, such as restaurants and movie theaters, in locations where parking garages might otherwise be located.

Identify each example of how this strategy may affect the short?run costs of the urban apartment industry. YOU CAN CHOOSE MULTIPLE ANSWERS

A.Smaller kitchens may result in lower construction costs (fixed costs), lowering the average cost of an apartment.

B.Larger living room space and bedroom space that smaller kitchens and the absence of parking space make possible may lower the average cost of an apartment.

C.The average cost of an apartment may fall because these apartment buildings accommodate more apartments.

D.The average cost of an apartment may fall because the fixed cost will be lower for an apartment building that does not have a parking garage.

10. Jayanti takes a job as tour manager of a famous pop artist. Each given example represents a stage in the pop artist's business. Place each example in the appropriate category based upon whether the stage is likely to be characterized by economies of scale or diseconomies of scale. Economies of scale Diseconomies of scale Answer Bank As the tour expands to more and more locations, Jayanti has to deal with cities that are less accustomed to hosting major concerts or have local businesses that are less experienced in setting up venues. As Jayanti gains experience, she learns which cities and countries are better at hosting concerts. The artist starts to tire after years of touring and requires additional conveniences, such as her own personal tour bus