A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the average and marginal cost of mining diamonds is constant at $1,000 per diamond and the demand is described by the following schedule:

Price	Quantity
$13,000	0
$12,000	1,000
$11,000	2,000
$10,000	3,000
$9,000	4,000
$8,000	5,000
$7,000	6,000
$6,000	7,000
$5,000	8,000
$4,000	9,000
$3,000	10,000
$2,000	11,000
$1,000	12,000

a. If there were many suppliers of diamonds, what would be the priceandquantity?

b. calculate consumer surplus, profit and deadweight loss inthiscompetitivemarket.

c.If Russia and South Africa formed a cartel, what would be the priceandquantity?

d.If the countries split the market evenly, what would be South Africa's production andprofit?

e.Calculate consumer surplus and deadweight loss when the market is controlled by acartel.

f.What would happen to South Africa's profit ifit increased its production by 1,000 while Russia stuckto thecartelagreement?

g.What is the Nash equilibrium price for thediamond market?

h. Calculate consumer surplus and deadweight loss inthemarket.

i.Assume that a third country, Alkebu-Lan, discovers a major diamond field and wishes to join Russia and South Africa as global diamond players. If the countries split the market evenly, what is the new Nash equilibrium price and profit foreachcountry?

j. Calculate consumer surplus and deadweight loss inthemarket.