Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please use the concept of economies of scale to explain: 1) why movie theaters in larger towns and cities grew from many theaters with one

Please use the concept of economies of scale to explain: 1) why movie theaters in larger towns and cities grew from many theaters with one screen to fewer theaters but with 20-30 screens. Also, 2) why are movie theaters are rarely larger than 32 screens? Why is it not be practical from a business sense for Houston to have 2 or 3 movie theaters each with 100 screens, replacing all of the 20-30 screen theaters?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Paul Krugman, Robin Wells

3rd edition

978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434

More Books

Students also viewed these Economics questions

Question

Behaviour: What am I doing?

Answered: 1 week ago