Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some graphic symbol of caryopsis for eat. Cereal is one of the most popular breakfast foods and some brand is found in almost each home in America (Topher). This vast constancy stems from the deep 1800s when John Harvey Kellogg and C. W. Post began cereal production in office Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery storage shelves. However, only a few select companies make any one of those divers(prenominal) kinds of cereal. There are iv different categories into which economists consort industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its suffer unique characteristics. Perfect competition has an unlimited second of fall guy of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a depressive disorder number of interdependent firms. The dema nd curve of an oligopoly depends on how firms scourge to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly grocery can adopt to assist 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 homogenized 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 stinting lolly are possible for an oligopol y, and non-price competition is a world-sha! ttering dash to compete with other firms in the same market. well-nigh 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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