An Example of an Uncontrollable Resource That Contributes to Diseconomies

question 178

Multiple Choice

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

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Definitions:

Laser Printers

Printers that produce high-quality text and graphics by using a laser beam to transfer toner to paper.

Screen Printing

A printing technique that utilizes a mesh to transfer ink onto a substrate, except in areas made impermeable to the ink by a blocking stencil.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or sales volume.

Fixed Cost

Fixed expenditures, including rent, salaries, and insurance, that are unaffected by changes in production or sales volumes.