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Trader Joe's sells very cheap and popular wine produced by Bronco Wine (Hayley Peterson, The Real Reasons Trader Joe's Wine Is So Cheap, Business Insider,

Trader Joe's sells very cheap and popular wine produced by Bronco Wine (Hayley Peterson, "The Real Reasons Trader Joe's Wine Is So Cheap," Business Insider, May 6, 2017). When asked why the wine is so cheap, Bronco winemaker Ed Moody emphasizes the volume of output, stating that it is easier to make wine "in a 700,000-gallon tank than . . . in a 700-gallon one because there is less exposure to air and oxygen is the enemy in winemaking." Wine educator Keith Wallace emphasizes the role of machines: "The company uses machines to harvest the grapes, which helps keep labor costs low, but also increases the chances that bad grapes end up in the wine." One of these reasons is based on choosing input proportions to minimize cost and one is based on economies of scale. State which is which and explain

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