Marginal Revolution University Learn, Teach, and Share
Principles of Micro
Principles of Macro
See All 16 Courses
You are here
» Food and Agricultural Productivity »
The Clove Monopoly (Optional)
» Practice Questions
1. In 1992, Indonesia established a trading board for cloves. The resulting board had both monopoly and monopsony power. As a result,
a. The board could purchase cloves at lower prices from farmers than in a market setting.
b. The board could sell cloves at a higher price than in a market setting.
c. Both a. and b.