Consider again the beer industry in the United States in the 1940s.
Brewers in the U.S. all followed a generalist model, making a variety of beers for a variety of consumers.
For the purposes of this question, assume (as is actually the case) that there are economies of scale in this industry—a brewer could, if it so chose, to increase the scale of its production operations and lower its costs per bottle of output.
With the above stipulations in mind, explain:
a) According to the resource partitioning hypothesis, what would have to be true of the U.S. beer industry for us to see all brewers continue to follow the generalist form?
b) According to the resource partitioning hypothesis, what would have to be true of the U.S. beer industry for us to see at some point the emergence of specialist beer organizations, operating in a separate market niche?
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