Theater Upgrades BMC is considering upgrading the sound systems in their theaters so that they can patrons can get the full experience from surround sound movies. They discovered that upgrade costs at locations with 12 screens were $170,000 but were $110,000 at locations with six screens. What are the fixed costs of upgrading at a location?
FC + 12×MC = $170,000 and FC + 6×MC = $110,000 . Doubling the second equation yields 2×FC + 6×MC = $220,000 . Subtracting the first equation from both sides of this yields FC = $50,000.
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A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the
A) external cost. B) external benefit. C) deadweight loss. D) big tradeoff.
If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP remains the same and average price level rises. b. Real GDP remains the same and average price level remains the same. c. Real GDP falls and average price level rises. d. Real GDP falls and average price level falls. e. Real GDP falls and average price level remains the same.
A change in the following, will not result in a change in demand?
(a) Change in the price of a complement. (b) Change in the price of a substitute. (c) Change in the price of the good itself. (d) Change in expected future prices.