Why Would a Retailer Expand to a Central Business District

question 41

Multiple Choice

Why would a retailer expand to a central business district?

• A)low crime rate
• B)ample parking
• C)high foot traffic on weekends
• D)well planned layouts of surrounding area
• E)professionals as customers during the weekdays

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Definitions:

Minimum Efficient Scale

The smallest scale of production where long-term average cost is minimized, helping businesses realize economies of scale.

Plant Sizes

Refers to the scale or capacity of a manufacturing facility or production unit in terms of its output or operations.

ATC

Abbreviation for Air Traffic Control, responsible for regulating and guiding aircrafts to ensure their safe operation in the sky.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.