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Besides its own productions, this theatre also stages more than 400 plays each year.
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The Montgomery Museum of Fine Arts displays permanent collections with items dating from the beginning of the 19th century, from domains like painting and sculpture.
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As marginal costs would be very low in this industry, pricing could indeed take a nosedive.
During an upturn however i.e when demand firms up, prices would rise, and as marginal costs are very low, almost everything would fall straight to the bottomline.
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There is almost always a give-take relationship between variable and fixed costs - businesses with high fixed costs invariably have low variable costs and vice-versa.
If an industry characterized with high fixed costs faces a downturn, companies would be willing to lower prices to the marginal cost of production as it would still cover part of their fixed costs.
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