Scenario: Suppose that in 2015, a new company called "Corpus Christi Cheer Beer" begins to produce beer to sell to local restaurants.
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. Describe likely economies of scope for a company such as Miller, relative to Corpus Christi Cheer Beer, in:
- Services for buyers
- Purchasing inputs
- Advertising
- Employee contracts
What types of learning economies would you would expect Miller to have that Corpus Christi Cheer Beer does not?
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."