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A large share of the world supply.f of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant
A large share of the world supply.f of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $2,000 per diamond, and the demand for diamonds is described by the following schedule: Price Quantity 1' Dollars) (Diamond's) 0,000 2,000 ?,000 3,000 6,000 4,000 5,000 5,000 4,000 6,000 3,000 7,000 2,000 8,000 1,000 9,000 If there were mam,r suppliers of diamonds, the price would be per diamond and the quantityr sold would he \\:| diamonds. If there were only one supplier of diamonds, the price would be per diamond and the quantity sold would be|:| diamonds. Suppose Russia and South Africa form a cartel. In this case, the price would be p-ar diamond and the total quantity sold would be \\:| diamonds. If the countries split the market evenly, South Africa would produce \\:| diamonds and earn a prot _. If South Africa increased its production by 1,000 diamonds while Russia stuck to the cartel agreement, South africa's prot would V to 52
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