Scenario: Suppose that in 2021, a new company called “Corpus Christi Cheer Beer” begins to produce beer to sell to local restaurants.
1. Describe 2 ways in which you would expect a company such as Miller to experience economies of scale that Corpus Christi Cheer Beer does not XXXXXXXXXXpoints)
2. Describe likely economies of scope for a company such as Miller, relative to Corpus Christi Cheer Beer, in: XXXXXXXXXXpoint each)
3. What types of learning economies would you would expect Miller to have that Corpus Christi Cheer Beer does not? XXXXXXXXXXpoints)
4. Using concepts from Ch. 2, take a position and argue either FOR or AGAINST diversification of Miller if it is thinking about buying a company that sells “beer nuts.” (2 points)
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