Consider a theater that has seating for 1,200 people. For the past several days, the show has been sold out. Tickets currently cost $5, but the owner wants to increase the ticket price. An increase in price will probably lead to lower attendance. What will that do to profit margins? In this Discussion, you will explore the impact of a change in the total output of goods and services on other economic factors.

Based on your reading for this week:

Evaluate how average, total, and marginal costs change as the output of a good or service of your choice increases. Can economies of scale be maintained despite high start-up costs? When can diseconomies of scale be expected? Are marginal costs high or low relative to the average total costs?