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Anheuser-Busch: Monopolize The Beer Industry

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Anheuser-Busch is ranked 56th on the Forbes list of the World’s Biggest Public Companies, and has recently closed a deal to purchase SABMiller, owner of Miller Lite, Peroni, and Fosters. Anheuser-Busch InBev already owns Busweiser, Corona, and Stella Artois. This merger positions Anheuser Busch to monopolize the beer industry globally and is the largest beer acquisition in history (Gara, 2015).
Economies of scale occur when long-run average costs decrease as output increases. Anheuser-Busch has several examples of economies of scale with the most obvious being the acquisition of SABMiller. This would be an example of specialization and division of labor. Large scale production of beer allows for the production process to be divided into
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