Sri Lanka is one of the major tea producing nations in the world. A substantial portion of thecountry's annual tea production gets exported to variouscountries, including the United ArabEmirates, Russia, and other countries in the Middle East. Given the success in thesecountries, Sri Lanka decided to foray into the Asian market. Research evidence indicated that people in Myanmar are major consumers of tea and that there is a high demand for tea in that country. This convinced industry experts in Sri Lanka that exporting to Myanmar was a good idea.

The above reasoning is based on the assumption that

the market for tea in Myanmar is perfectly competitive.

B.

people in Myanmar have similar tastes and preferences in tea consumption as the other consumers of Sri Lankan tea.

C.

Sri Lankan tea producers incur a higher cost of production than the tea producers in Myanmar.

D.

Myanmar does not export tea.

E.

tea exports to Myanmar will help the Sri Lankan producers to get an idea about how they might perform in other Asian markets