Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some part of food grain for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost either home in America (Topher). This vast constancy stems from the profoundly 1800s when John Harvey Kellogg and C. W. Post began cereal production in strife Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery reposition shelves. However, only a few select companies make any(prenominal) one of those divers(prenominal) kinds of cereal. There ar iv different categories into which economists demote industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its make unique characteristics. Perfect competition has an unlimited second of support of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a embarrassed number of interdependent firms. Th e demand curve of an oligopoly depends on how firms rack up to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly trade can film to befriend with other firms in the industry, which is illegal, or the firm can choose to deal against the other firms. An oligopoly produces either differentiated products or homogeneous products. In an oligopolistic market, portal barriers, which prohibit new firms from entering the industry, are present.

Examples of entry barriers include patents, brand loyalty and trademarks. Long-run scotch lolly are possible for an oligopoly, and non-price competition is a probatory dash! to compete with other firms in the same market. some of the non-price competition in an oligopoly comes from product differentiation. The cereal manufacturing industry is an oligopolistic market because it exhibits many of these traits. An oligopoly consists of a small number of interdependent firms. The cereal manufacturing industry consists of four different firms that... If you want to get a near essay, order it on our website: OrderCustomPaper.com

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