ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Breakfast cereals are an example of:
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Pure competition
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Monopolistic competition
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Oligopoly
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Monopoly
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Explanation:
Detailed explanation-1: -Answer and Explanation: The market for breakfast cereals is an example of an undifferentiated oligopoly. The given statement is FALSE.
Detailed explanation-2: -Big Cereal is a highly concentrated oligopoly in which the big four companies own roughly 85 percent of the market.
Detailed explanation-3: -According to economic theory, our breakfast cereal market is structured as a monopolistically competitive market.
Detailed explanation-4: -Some examples of oligopolies include the car industry, petrol retail, pharmaceutical industry, coffee shop retail, and airlines. In each of these industries, a few large companies dominate.
There is 1 question to complete.