Problem
1. Practical Application: You have decided to open some movie theaters. Should you open six 200-seat theaters at six different locations, or open the six 200-seat theaters in one large building? Explain your answer in terms of economies of scale and diseconomies of scale.
2. Web Activity: How much are the fixed and variable costs of renting a compact car for a week at Boston's Logan Airport? Go to budget websiteor avis website.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.