A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $23 thousand per diamond. For simplicity, marginal cost = average total cost. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. a) The table below describes the demand for diamonds. Fill in the TR and MR. Price (in Quantity (in TR in MR per diamond thousands) thousands) millions) (in thousands) 39 14 0 37 16 0 0 35 18 0 0 20 0 0 31 22 0 0 29 24 0 0 27 26 0 0 28 0 23 30 0 0 21 32 0 0 b) If there were many suppliers of diamonds, what would be the price, quantity and profits? P = $0 thousand per diamond 0 = 0 thousand Profits = $0 milion c) If there were only one supplier of diamonds, what would be the price, quantity and profits? P = $0 thousand per diamond Q = 0 thousand Profits = $0 milion d) If Russia and South Africa formed a cartel, what would be the price and quantity? pecently.comtudard-araberatsid--1019 12 Lab 1 to 5) Lawning in 412024 P = $0 thousand per diamond Q = 0 thousand e) If the countries split the market evenly, what would be South Africa's production and profit? 0 = 0 thousand Profits = $0 milion f) What would happen to the profits of these two countries if South Africa increased its production by 4 thousand while Russia stuck to the cartel agreement? Profits for South Africa = $0 million Profits for Russia = $0 million g) Cartel agreements are often not successful because Any previous tacit agreement to cut back production to keep prices high wil not be honored O Each firm has the incentive to cheat on the other to get more profits. The cheated knows that it loses profit while theater earns more profits, it will cheat sequentially O All of the above. O None of the above. A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $23 thousand per diamond. For simplicity, marginal cost = average total cost. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. a) The table below describes the demand for diamonds. Fill in the TR and MR. Price (in Quantity (in TR in MR per diamond thousands) thousands) millions) (in thousands) 39 14 0 37 16 0 0 35 18 0 0 20 0 0 31 22 0 0 29 24 0 0 27 26 0 0 28 0 23 30 0 0 21 32 0 0 b) If there were many suppliers of diamonds, what would be the price, quantity and profits? P = $0 thousand per diamond 0 = 0 thousand Profits = $0 milion c) If there were only one supplier of diamonds, what would be the price, quantity and profits? P = $0 thousand per diamond Q = 0 thousand Profits = $0 milion d) If Russia and South Africa formed a cartel, what would be the price and quantity? pecently.comtudard-araberatsid--1019 12 Lab 1 to 5) Lawning in 412024 P = $0 thousand per diamond Q = 0 thousand e) If the countries split the market evenly, what would be South Africa's production and profit? 0 = 0 thousand Profits = $0 milion f) What would happen to the profits of these two countries if South Africa increased its production by 4 thousand while Russia stuck to the cartel agreement? Profits for South Africa = $0 million Profits for Russia = $0 million g) Cartel agreements are often not successful because Any previous tacit agreement to cut back production to keep prices high wil not be honored O Each firm has the incentive to cheat on the other to get more profits. The cheated knows that it loses profit while theater earns more profits, it will cheat sequentially O All of the above. O None of the above