4). Diamond Market

In parts of South Africa, the only viable jobs are in the diamond mines. Across whole regions, the mines are owned by giant multinational companies.

a). What kind of market structure is this probably? Explain.

b). How are the wage rate and the number of workers decided in this sort of industry? Show graphically.

c). Show changes in consumer surplus, producer surplus, and deadweight loss as compared to if the diamond workers' labor market were competitive.