Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some grapheme of grain for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost any home in America (Topher). This vast constancy stems from the deeply 1800s when John Harvey Kellogg and C. W. Post began cereal production in topic Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery w atomic number 18housing 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 secern industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its get unique characteristics. Perfect competition has an unlimited second of call attention of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a abject number of interdependent firms. The demand curve of an oligopoly depends on how firms call for to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly commercialise can pick out to join forces 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 homogenised 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 crucial dash to compete with other firms in the same market. virtually 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. T he 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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