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The cereal aisle is a good example of a MONOPOLISTIC COMPETITION. A monopolistic competition is A MARKET STRUCTURE IN WHICH MANY FIRMS SELL PRODUCTS THAT ARE SIMILAR BUT NOT IDENTICAL. (Mankiw, N., 2023) Three of the top contenders are Post, Kellogg's, and General Mills and range in price anywhere between $3.98 to $5.49. Even though these three companies compete closely together, they are all spaced near each other and take up most of the aisle combined. Each brand has a variety of options to offer ranging from delicious sugary cereals to heart healthy options. Product placement is a well-known marketing technique, and you will find the brightly colored kid friendly options such as Fruity Pebbles on the lower shelves where kids can see them and the neutrally colored boxes of heart healthy Cherrios on the higher shelves where they will be visible from an adult's view. Cereal companies are known for using special athletes like Michael Jordan and cartoon characters like the Teenage Mutant Ninja Turtles on the covers of their boxes to catch consumer attention. For those consumers that are prone to shop for brand name items, these companies have a lot to offer. For those that are slightly more cost conscious, you can find cheaper versions placed directly next to the item on the shelf. These items are usually referred to as store brands but in some cases, you will find they are packaged by one of the bigger packaging companies.

In the same aisle, we have an example of OLIGOPOLY. An oligopoly is A MARKETSTRUCTURE IN WHICH ONLY A FEW SELLERS OFFER SIMILAR OR IDENTICAL PRODUCTS. (Mankiw, N., 2023) Usually placed on the top shelf in adult view and geared toward high-end shoppers you will find the organic cereal market. Ranging in price anywhere from $4.99 to $8.99, brands like Kashi, Food for Life, and Seven Sundays compete in a much smaller market.

I have learned that monopolistic competition is necessary for consumer satisfaction. A person who has ever changing tastes and preferences could not be satisfied without the market. I also remembered that cereal is one of my favorite meals and have a craving for Honey Nut Cherrios lol.