When the brewing industrys demand for a commodity

Reference no: EM13233594

In a leading publication your read this statement: "There are also increasing expenses for commodities, such as barley, aluminum, and glass, making it important to gain economics of scale."

Sometimes industries get so big that they create shortages of the inputs they require, that is, they drive up prices by increasing demand faster than supply increases. Explain how this affects their cost functions?

Explain what happens in other industries when the brewing industry's demand for a commodity, such as aluminum, drives up worldwide prices?

Reference no: EM13233594

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