Economic Consequences on Sructural Changes in Brewing Industry

" Unit approachs, whether average or marginal, are used for a variety of decision do purposes in business organizations. The shape of the shortrun be curve is sizablely determined "by the productivity of the covariant input factors."

The effects on longrun building block costs in the brewing industry of the ingress of the peeled technology are illustrated in Chart 1, which may be found on the following page. With the new technology in place, brewers are able to lower longrange unit of measurement costs from what was possible under the old technological regime.

The ontogeny in percapita consumption means that market opportunities support the introduction of the new bottling technology. As it is the large shield brewers who are beat out positioned to exploit the opportunities associated with the new bottling technology, the middle surpass and smallscale brewers ordain come under increasing competitive cost pressures from the largescale brewers. The results of such a situation is that the largescale brewers will increase their market per centum both(prenominal) because of the increase in percapita consumption and at the expense of the midscale and smallscale brewers.

As the market share of the largescale brewers increases, the midscale and smallscale brewers will find their competitive positions steadily eroding. As a consequence, many midscale and smallscale brewers will be forced to either exit the industry or be merged with a larges

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