Coke and Pepsi enjoy economies of scale in all but which of the following markets?
A) soft drinks
B) coffee beverages
C) noncarbonated beverages
D) bottled water

Question

Quizplus · Accepted Answer

The question asks which market(s) Coca-Cola and Pepsi enjoy economies of scale in all except, meaning there must be at least one market where they do not. Both companies have a wide range of products in the soft drink, noncarbonated beverage, and bottled water markets, and therefore enjoy economies of scale in these markets. However, in the coffee beverage market, neither company has as commanding a market share as they do in the other markets. As such, they do not enjoy as much economies of scale in the coffee beverage market, making B the correct answer.

Coke and Pepsi Enjoy Economies of Scale in All but Which