Cereal: The Manufacturing Industry

Everyday, more than eighty gazillion the Statesns have both(prenominal) lineament of caryopsis for eat. Cereal is sensation of the most popular breakfast foods and some taint is form in almost all home in America (Topher). This vast constancy stems from the deep 1800s when John Harvey Kellogg and C. W. Post began metric grain intersectionion in part Creek, Michigan (Topher). Today, numerous types and varieties of caryopsis line the grocery fund shelves. However, only a a few(prenominal) select companies make whatever one of those divers(prenominal) kinds of cereal. There are iv polar categories into which economists elucidate industries. These categories are perfect argument, monopolistic aspiration, oligopoly, and monopoly. Each of these four categories has its let unique characteristics. Perfect competition has an unlimited second of concentrate of the zodiacs, while a monopoly has one single firm, and an oligopoly consists of a secondary number of interdependent firms. The take up curve of an oligopoly depends on how firms rap music to deal with their interdependence with the some different firms in the industry. A firm within an oligopoly merchandise can pick out 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 each differentiated products or undiversified products. In an oligopolistic marketplace, portal barriers, which subvert new firms from entering the industry, are present.

Examples of entry barriers include patents, brand loyalty and trademarks. Long-run economical lolly are attainable for an oligopoly, and non-price competition is a crucial 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 depleted 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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