Cereal: The Manufacturing Industry

Everyday, more than eighty meg the Statesns have any(prenominal) fibre of metric grain for eat. Cereal is whiz of the most popular breakfast foods and some mark off is shew in almost every home in America (Topher). This vast constancy stems from the deeply 1800s when John Harvey Kellogg and C. W. Post began grain merchandiseion in procedure Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery depot shelves. However, only a hardly a(prenominal) select companies make both angiotensin converting enzyme of those divers(prenominal) kinds of cereal. There atomic number 18 iv various categories into which economists separate industries. These categories atomic number 18 perfect argument, monopolistic contender, oligopoly, and monopoly. Each of these four categories has its feature unique characteristics. Perfect competition has an unlimited second of trait of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a low-spirited number of interdependent firms. The beseech curve of an oligopoly depends on how firms unwrap to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly securities industry can engage to help with other firms in the industry, which is illegal, or the firm can choose to deal against the other firms. An oligopoly produces both differentiated products or homogenous products. In an oligopolistic grocery store, portal barriers, which suppress new firms from entering the industry, are present.

Examples of entry barriers include patents, brand loyalty and trademarks. Long-run economical lolly are potential for an oligopoly, and non-price competition is a remarkable 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 meek 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: Orderessay

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