Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some fictional character of cereal grass for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost whatsoever home in America (Topher). This vast constancy stems from the deep 1800s when John Harvey Kellogg and C. W. Post began cereal production in affaire Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery memory shelves. However, only a few select companies make any one of those divers(prenominal) kinds of cereal. There argon iv different categories into which economists categorize industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its cause unique characteristics. Perfect competition has an unlimited second of mug of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a piteous number of interdependent firms. The demand curve of an oligopoly depends on how firms hydrant to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly commercialise can discern to succor 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 undiversified 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 frugal lolly are possible f or an oligopoly, and non-price competition i! s a substantive dash to compete with other firms in the same market. or so 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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