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Question: 1 a large share of the worlds supply of diamonds...

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1 A large share of the worlds supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is $1000 per diamond, and the demand for diamonds is described by the following schedule: Price ($) 8000 7000 6000 5000 4000 3000 Quantity 5000 6000 7000 8000 9000 10000 11 000 a b c there were many suppliers of diamonds, what would be the price and quantity? there was only one supplier of diamonds, what would be the price and quantity? If Russia and South Africa formed a cartel, what would be the price and quantity, countries spit the market evenly, what would be South Africas production and profit? What would happen to South Africas profit if it increased its production by 1000 while Russia stuck to the cartel agreement? Use your answer to part (c) to explain why cartel agreements are often not successful the d
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