Go to any Dominion supermarket and walk to the cereal aisle.You will notice four brands - Kellogg's,Quaker,General Mills,and Post-seem to occupy most of the shelf space.These cereals are all priced about the same.There is a good deal of product differentiation as the result of licensing agreements that have created a line of Disney cereals and through the use of different health claims.Given this information,you should know the cereal industry is an example of:
A)a pure monopoly.
B)an oligopoly.
C)monopolistic competition.
D)a pure competition.

Question

Quizplus · Accepted Answer

The cereal industry is an example of an oligopoly because it is dominated by a few large firms (Kellogg's, Quaker, General Mills, and Post) that have significant control over the market.

Go to Any Dominion Supermarket and Walk to the Cereal