Which of the following statements about the beer industry is correct?
A)Over the last 30 years, technological change has resulted in substantial diseconomies of scale in the industry.
B)In 2000, the minimum efficient scale in the industry was approximately 18 million barrels per year.
C)As a result of an increase in the number of microbreweries, the five largest firms in the industry control less than 50 percent of the market.
D)The market share of microbreweries was estimated to be 20 percent in 1990.

Question

Quizplus · Accepted Answer

In 2000, the minimum efficient scale (MES) in the beer industry was indeed around 18 million barrels per year. This figure represents the smallest scale at which a brewery could operate efficiently, taking advantage of economies of scale.

Which of the Following Statements About the Beer Industry Is