In November 2012,there Was Some Discussion of Several South-Asian Countries

question 96

Multiple Choice

In November 2012,there was some discussion of several south-Asian countries joining together to restrict the supply of rice to the world market.Between them,these countries' exports of rice account for 40% of the total global trade.What would they be trying to accomplish?

• A)They are attempting to form a cartel,increase their joint output,and control a larger percentage of the total global trade.
• B)They are attempting to price discriminate between consumers of their exported rice,thereby increasing their share of the global trade and increasing their joint profits.
• C)They are attempting to form a cartel,jointly restrict output,and increase the world price of rice.
• D)They are attempting to act as a bloc to restrict entry of new producers to the world market,and thereby protect their joint profits.
• E)They are attempting to form a cartel,drive other producers out of the world market and then increase their output of rice.

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Definitions:

Productive Efficiency

A situation in which an economy or entity is operating in such a way that it cannot produce more of one good without producing less of another.

Creative Destruction

The process by which new innovations cause older technologies, companies, or products to become obsolete, driving economic growth through continuous renewal.

Dominant Firms

Companies that have a major portion of market share and can significantly influence market conditions and prices.

New Products

Items or services that have recently been introduced to the market and offer new features, functionalities, or benefits to consumers.