Hawaii produces a small but increasing amount of cacao beans each year even though the cost of production is much higher than it is in Ivory Coast, where a significant portion of the world's cacao beans are produced annually. Which statement is an explanation of how the industry in Hawaii might be able to succeed?
A) Ivory Coast could impose high tariffs against cacao imports from Hawaii.
B) Ivory Coast could impose strict import quotas against imported cacao beans.
C) Hawaii could persuade its trade partners to impose import quotas against imported cacao beans.
D) Hawaii could market its cacao beans as a higher quality bean, effectively selling them in a separate world cacao bean market at a higher price than would prevail in what would be perceived as a separate world market for a lower-quality Ivory Coast cacao bean with a lower equilibrium price.
Correct Answer:
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