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There were mainly four kinds of beers: Dry, Draft, Lager, & Melt. Consumer taste was graduating changing. Their preferences were switching from Lager beer to dry and draft beer. The government has tremendous power in this industry in terms of price and distribution (a distributor or retailer needs a license issued by the government to sell beers). Therefore, both the beer license and structure of distribution channels act as barriers to entry. Since price is regulated by the government, buyers (consumers) do not have much influence on the price in the market. Firms compete in a Cournot-like environment...
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