Is the U.S. dairy industry a competitive industry? Why or why not? 1 pt.

Are there economies of scale in milk production? Why or why not? Make sure to explain what economies of scale are. (1.5 pts.)

Consider milk production. Which costs are likely to be fixed and which costs are likely to be variable in a dairy farm in the short run? Explain briefly why. You should provide at least 2 examples of fixed and 2 examples of variable costs.