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Hi, I need help with this Microeconomics question please, thanks ! Question 5 [43 points] A large share of the world supply of diamonds comes

Hi, I need help with this Microeconomics question please, thanks !

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Question 5 [43 points] 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 $18 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. b) If there were many suppliers of diamonds, what would be the price, quantity and prots? P = thousand perdiamond Q = thousand Profits = million c) If there were only one supplier of diamonds, what would be the price, quantity and prots? thousand per diamond thousand million d) If Russia and South Africa formed a cartel, what would be the price and quantity? P = thousand per diamond Q = thousand e) If the countries split the market evenly, what would be South Africa's production and profit? Q = thousand Profits = million f) What would happen to the prots of these two countries if South Africa increased its production by 2 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 0 Any previous tacit agreement to cut back production to keep prices high will not be honored. 0 Each firm has the incentive to cheat on the other to get more profits. 0 The cheated knows that it loses prot while cheater earns more profits, it will cheat sequentially. 0 All of the above. 0 None of the above

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