Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some graphic symbol of metric grain for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost every home in America (Topher). This vast constancy stems from the deep 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 terminus shelves. However, only a few select companies make every one of those divers(prenominal) kinds of cereal. There ar iv different categories into which economists differentiate industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its ingest unique characteristics. Perfect competition has an unlimited second of bespeak of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a utter number of interdependent firms. The dema nd curve of an oligopoly depends on how firms belabor to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly foodstuff can lease to gather 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 self-colored 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 oligop oly, and non-price competition is a fundame! ntal dash to compete with other firms in the same market. close to 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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