avc=mc=$1000 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 SO 13,000 12 Calculate consumer surplus and deadweight loss when the market is controlled by a cartel. 3 marks 13 What would happen to South Africa's profit if it increased its production by 1,000 while Russia stuck to the cartel agreement? 1 mark 14 What is the Nash equilibrium price for the diamond market? 1 mark 15 Calculate consumer surplus and deadweight loss in the market. 3 marks 16 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 for each country? 2 marks