Assume that a consumer’s preference is for two
goods, X and Y in Exhibit A-6. By holding the price
of Y and money income constant while varying the
price of X, it is possible to derive
a. the demand curve for X.
b. the demand curve for Y.
c. the demand curve for both X and Y.
d. none of the above.
Q256: Explain why the long-run average cost curve for
movie theaters falls (economies of scale) as movie
theaters add screens.
Explain why the long-run average cost curve
for movie theaters rises (diseconomies of scale)
beyond some number of screens.