1 A large share of the world's supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is $1000 per diamond, and the demand for diamonds is described by the following schedule: Price ($) Quantity 8000 5 000 7000 6 000 6000 7000 5000 8 000 4000 9000 3000 10 000 2000 11 000 a If there were many suppliers of diamonds, what would be the price and quantity? b If there was only one supplier of diamonds, what would be the price and quantity? c If Russia and South Africa formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be South Africa's production and profit? What would happen to South Africa's profit if it increased its production by 1000 while Russia stuck to the cartel agreement? d Use your answer to part (c) to explain why cartel agreements are often not successful