The given statement " Originally, food cooperatives were formed to provide better prices for farmers. These groups now cooperatively buy farm equipment and other products, and realize economies of scale by banding together for these things " is TRUE.
Explanation:
One form of consumer cooperative is food cooperatives. This includes multi-outlet stores and smaller retail malls with a few owners.
Consumers are developed to gain lower prices and better control over the product portfolio and efficiency. When membership expanded, many cooperative stores started out as small buying groups and became corporate co-operatives.
While the dissolution of the Berkeley food cooperative, in 1988, was a blow to the consumer cooperative movement, many other food cooperatives remain stable and expanding in California.
