Suppose that De Beers is a singleprice monopolist in the market for diamonds. De Beers has ve potential customers: Raquel, Jackie, loan, Mia, and Sophia. Each of these customers will buy at most one diamondand only if the price is just equal to. or lower than, her willingness to pay. Raquel's willingness to pay is $400; Jackie's, $300; Joan's, $200; Mia's, $100; and Sophia's, $0. De Beers's marginal cost per diamond is $100. This leads to the demand schedule for diamonds shown in the accompanying table. w iam (5) WW (0) 500 0 400 l 300 2 200 3 100 4 0 5 (a) Calculate De Beers's total revenue and its marginal revenue. From your calculation, draw the demand curve and the marginal revenue curve. Hint: You can use the following format as reference: . . - ' [S m\" minimum\") WW6) Imalmnelil W6) W i 500 o o - too 400 1 400 400 we (12 marks) 0)) Explain why De Beers faces a downward-sloping demand curve. (10 marks) (c) Explain why the marginal revenue from an additional diamond sale is less than the price of the diamond. (10 marks) (d) Suppose De Beers currently charges $200 for its diamonds. If it lowers the price to $100, how large is the price effect? How large is the quantity effect? (10 marks) (e) Add the marginal cost curve to your diagram from part a and determine which quantity maximizes De Beers's prot and which price De Beers will charge. (10 marks)