Scenario: Kellog's Makes Raisin Bran, Granola Raisin & Honey Frosted

Scenario: Kellog's makes Raisin Bran, Granola Raisin & Honey Frosted Flakes cereal, Apple Jacks cereal, and Smorz cereal, among others-in all more than forty varieties of breakfast cereal. General Mills, one of Kellog's many competitors, make Cheerios, Chex, Trix, and so on.
-Refer to the scenario above.Which condition of a perfectly competitive market could most directly be violated in the market for breakfast cereal?

A) Each seller produces a negligible fraction of the total market supply.
B) Each seller produces an identical good or service.
C) Free entry to and exit from the market.
D) None. The market for cereals satisfies all the condition for perfect competition.

Correct Answer:

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