Explore BrainMass
Share

Explore BrainMass

    Monopolistic Competition and Oligopoly

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:08 am ad1c9bdddf
    https://brainmass.com/economics/preferences-choice/monopolistic-competition-oligopoly-example-322081

    Solution Preview

    This is due to the fact that one cereal company produces many different types of cereals so while there are many choices, no matter what choice a consumer picks, the same company profits and when a ...

    Solution Summary

    Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.

    $2.19