Go to Any Dominion Supermarket and Walk to the Cereal

question 233

Multiple Choice

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.