Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 (Kenyan Shilling) billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder.If all coffee growers had to sell their produce to Tetu Coffee, this would be a(n):
A. price-discriminating monopoly.
B. oligopoly.
C. monopsony.
D. natural monopoly.
Answer: C
You might also like to view...
What role does human capital play in accounting for income inequality?
What will be an ideal response?
In an economy with no government or foreign sector, which of the following always holds true, ex-post?
A) Consumption equals investment. B) Velocity equals money demand. C) Saving equals consumption. D) Saving equals investment.
Jason works in finance at an MNE. Part of his job is to invest large sums of money in various markets. His latest transaction was investing $10,000 in British pounds for 120 days, then taking the British pounds and investing them in euros for 90 days, and then converting it all back to U.S. dollars. Jason is most likely participating in ________.
A) interest arbitrage B) speculation C) cryptocurrency D) options
Suppose a country switches from a fixed to a flexible exchange rate. Which of the following will occur as a result of this change?
A) Monetary policy will become a less effective tool for changing output. B) A given change in government spending will now have a greater effect on output. C) Both fiscal and monetary policy will become more effective in changing GDP. D) Both fiscal and monetary policy will become completely ineffective in changing GDP. E) none of the above