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The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year,

The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:

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Be equal to the marginal cost of diamonds.

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Be equal to the average total cost of diamonds.

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Exceed the marginal cost of diamonds but equal to the average total cost of diamonds.

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Exceed both the marginal cost and the average total cost of diamonds.

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