Two Members of the Kenyan Parliament from Coffee-Growing Areas Said

Multiple Choice

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. What would create a market with one buyer in the situation described?

A) The government prohibits other buyers.
B) There are economies of scale in purchasing coffee.
C) Tetu Coffee has the ability to outcompete other coffee buyers.
D) There are economies of scope.