The u. s. beer industry is characterized by market power for only a few firms, with the largest firm enjoying a 50% market share. one reason for this is economies of scale. economies of scale means that:

a. as beer production increases, costs increase significantly.
b. patents have allowed beer producers to have low costs of production.
c. as beer production increases, the average total cost of production falls.
d. if the industry were made perfectly competitive, the costs of production would fall.

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.