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The builder of a new movie theater complex is trying to decide how many screens...

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Accounting

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The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number of patrons the complex will attract each year, depending on the number of screens avaliable After paying the movie distributors and meeting all other noninterest expenses, the ownet expects to net $2 per ticket sold. Construction costs are $1,000,000 per scteen. Instructions: Enter your responses as whole numbers. a. Make a table showing the value of marginal product for each screen from the first through the fifth. What property is illustrated by the behavior of marginal products? Negative returns to copital Diminishing returns to capital increasing returns to capital b. How many screens wil be built if the real interest rate is 5.5 percent? b. How many screens will be built if the real interest rate is 5.5 percent? screen(s) c. How many screens will be built if the real interest rate is 7.5 percent? screen(s) d. How many screens will be bullt if the real interest rate is 10 percent? screen(s) e. If the real interest rate is 5.5 percent, what is the highest construction cost per screen that would make a five-screen complex profitable

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