If you were going to expand a facility by adding 10% more seats, and the costs of providing ushers and other personnel to deal with the new seats was exactly the same (on a per seat basis)as the older portion of the facility, the new MC curve would look like the previous one except that it would

Question

Quizplus · Accepted Answer

Adding 10% more seats means that the total capacity of the facility would increase by 10%. Since the costs of providing ushers and other personnel to deal with the new seats are the same on a per seat basis as the older portion of the facility, the cost per unit would remain the same. Therefore, the MC curve would shift to the right, indicating the new capacity.

If You Were Going to Expand a Facility by Adding