If the countries split the market evenly

Assignment Help Business Economics

Reference no: EM1315256

Q. A large share of the world supply of diamonds comes from Russia also South Africa. Assume which the marginal cost is constant at $1000 per diamond also the demand for diamonds is Elucidated by the subsequent schedule:

Price Quantity
$8000 5000
$7000 6000
$6000 7000
$5000 8000
$4000 9000
$3000 10000
$2000 11000
$1000 12000

a. If there were many suppliers of diamonds, Illustrate what would be the price also quantity?

b. If there was only one supplier of diamonds, Illustrate what would be the price also quantity?

c. If Russia also South Africa formed a cartel, Illustrate what would be the price also quantity? If the countries split the market evenly, Illustrate what would be South Africa's production also profit? Illustrate what would happen to South Africa's profit if it increased its production by 1000 while Russia stuck to its cartel agreement?

d. Utilize your answer to part (c) to elucidate why cartel agreements are often not successful.

Reference no: EM1315256

Questions Cloud

Fiscal policy measures for economy operating : What are two possible fiscal policy solutions for the problem? Using a Keynesian approach, you should be able to get numerical solutions. More points are given for numerical solutions.

Hypotheses test for equality of two means : A sample of 40 decaffeinated-coffee drinkers showed a mean of 5.84 cups per day, with a standard deviation of 1.36 cups per day. Use the .01 significance level. Compute the p-value.

Finding plausible value for correlation : Find out a plausible value r for correlation between vehicle weight and miles per gallon (mpg) shown in the scattergram below?

The initial total mechanical energy of the projectile : What is the speed of projectile immediately before it hits the ground if air friction does one and a half times as much work on projectile when it is going down as it did when it was going up.

If the countries split the market evenly : If the countries split the market evenly, Illustrate what would be South Africa's production also profit

Recessionary gap on consumers : What is the effect on investment? What is the multiplier effect?

Structured query language : Structured Query Language (SQL) refers to the accepted non-procedural language used in order to communicate with all the relational databases.

Identifying the type of correlation using scatter diagram : Based on the scatter diagram, does there appear to be any relationship between the number of assemblers and production? Explain.

Explain constant growth rate dividend capitalization model : Explain Constant growth rate dividend capitalization model approach and CAPM

User Account

All Pages