Where Did the Motion Picture Industry Begin, and for What

question 60

Multiple Choice

Where did the motion picture industry begin, and for what reason?

• A) New York, because its entertainment center already had Broadway and vaudeville theaters
• B) Chicago, because its central location reduced distribution costs
• C) Hollywood, because that's where the Warner Brothers first produced films
• D) Hollywood, because the warm, dry weather allowed filmmakers to produce films year-round

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's size or output increases beyond a certain point.

U-shaped

A description often used to illustrate how certain economic variables, such as average cost, behave, initially decreasing with increased activity and then increasing.

TVC

Total Variable Cost, which refers to the sum of all costs that vary with the level of output or production, such as raw materials and direct labor costs.

TC

An abbreviation for Total Cost, it quantifies the overall expense incurred in the production of goods or services, encompassing both fixed and variable costs.