Go to Any Dominion Supermarket and Walk to the Cereal

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) monopolistic competition.
B) a pure monopoly.
C) a pure competition.
D) an oligopoly.