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My graph should show that the SRAC has over 1.5 mil barrels output and the LRAC has over 8 mil barrels output.
a. What does this graph tell us the nature of economies of scale in the beer brewing industry?
b. What are the particular problems associated with the firm represented by the SATC curve shown in the graph? Does it represent a firm that would be able to survive over time?
Please cite all references that you used.
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