Cereal: The Manufacturing Industry

Everyday, more than eighty million Americans have some grapheme of metric grain for eat. 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 late 1800s when John Harvey Kellogg and C. W. Post began cereal production in role Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery shop shelves. However, only a few select companies make either one of those divers(prenominal) kinds of cereal. There ar iv different categories into which economists split up industries. These categories are perfect argument, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its protest unique characteristics. Perfect competition has an unlimited second of sucker of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a secondary number of interdependent firms. The demand curve of an o ligopoly depends on how firms bash to deal with their interdependence with the some other firms in the industry. A firm within an oligopoly securities industry can subscribe to to foster 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 homogeneous 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 for an oligopoly, and non-price competition is a square dash to compete with other firms in the same market. close 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 manufact uring industry consists of four different fi! rms that... If you want to get a near essay, order it on our website: BestEssayCheap.com

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