. a growing trend among apartment developers in large cities is to construct buildings with fewer, or no, parking spaces and smaller kitchens. the goal is to attract millennials who may choose to forgo a car and cooking at home. in exchange, developers are adding other amenities, such as restaurants and movie theaters, in locations where parking garages might otherwise be located. identify each example of how this strategy may affect the short‑run costs of the urban apartment industry. the average cost of an apartment may fall because these apartment buildings accommodate more apartments. the average cost of an apartment may fall because the fixed cost will be lower for an apartment building that does not have a parking garage. smaller kitchens may result in lower construction costs (fixed costs), lowering the average cost of an apartment. larger living room space and bedroom space that smaller kitchens and the absence of parking space make possible may lower the average cost of an apartment.
