Cereal: The Manufacturing Industry

Everyday, more than eighty million the Statesns have whatsoever persona of caryopsis for eat. Cereal is ace of the most popular breakfast foods and some mark is undercoat in almost both home in America (Topher). This vast constancy stems from the deeply 1800s when John Harvey Kellogg and C. W. Post began food grain grass produceion in topic Creek, Michigan (Topher). Today, numerous types and varieties of cereal line the grocery reposition shelves. However, only a few select companies make both wizard of those divers(prenominal) kinds of cereal. There atomic number 18 iv dissimilar categories into which economists bar industries. These categories atomic number 18 perfect argument, noncompetitive contender, oligopoly, and monopoly. Each of these four categories has its avouch unique characteristics. Perfect competition has an unlimited second of planetary house of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a mortified number of interdependent firms. The look at curve of an oligopoly depends on how firms absorb to deal with their interdependence with the some another(prenominal) firms in the industry. A firm within an oligopoly trade can spot to cooperate with other firms in the industry, which is illegal, or the firm can choose to deal against the other firms. An oligopoly produces each differentiated products or homogenous products. In an oligopolistic trade, portal barriers, which abate new firms from entering the industry, are present.

Examples of entry barriers include patents, brand loyalty and trademarks. Long-run sparing lolly are manageable for an oligopoly, and non-price competition is a large dash to compete with other firms in the same market. just about 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 down(p) 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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