Generally, as a movie theater adds more screens, it experiences
A)declining profit
B)higher prices
C)diseconomies of scale
D)economies of scale
E)diminishing marginal returns

Question

Quizplus · Accepted Answer

Adding more screens to a movie theater leads to economies of scale since fixed costs like rent, utilities, and staff can be spread across more screens, resulting in lower costs per screen and increased profitability.

Generally, as a Movie Theater Adds More Screens, It Experiences