User Account

All Pages

What would be the price and quantity of diamonds

Assignment Help Econometrics
Reference no: EM13245067

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 $ 1,000 per diamond, and the demand for diamonds is described by the following schedule:
Price Quantity
$ 8,000 5,000 diamonds
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

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

b. If there were only one supplier of diamonds, what would be the price and quantity?

c. If Russia and South Africa formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be South Africa's production and profit? What would happen to South Africa's profit if it increased its production by 1,000 while Russia stuck to the cartel agreement?

Reference no: EM13245067

Questions Cloud

Explain eias forecast for the price of gasoline and coal : Describe and explain EIA's forecast for the price of gasoline, coal and natural gas. Identify the factors that are affecting the forecast. Discuss specifically the impact of shifts in supply, shifts in demand, and examples of substitutions
Find the radius r of the electrons path : An electron enters a region of space containing a uniform 0.0000227-T magnetic field. Its speed is 115 m/s, Find the radius r of the electron\'s path, and the frequency f of the motion
Explain the concepts of reliability and validity : Explain the concepts of reliability and validity. Why are they important to research and statistics? How do we measure each of these? What happens if the questionnaire we use is determined to not be reliable or valid?
Explain what is the numerical value of the equilibrium : What is the numerical value (ignore units) of the equilibrium constant for the following reaction
What would be the price and quantity of diamonds : 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 $ 1,000 per diamond, and the demand for diamonds is described
Explain reduction potentials to calculate the value of k : use the appropriate standard reduction potentials to calculate the value of k at 25 degrees celcius for this reaction
How much hydrogen does sirius convert into helium eachsecond : Sirius has a luminosity of 8.4 * 10^27 Watts and a mass of 2.1 times the mass of the Sun, How much hydrogen does Sirius convert into helium each second
Evaluate the molality of a hydrochloric acid solution : Calculate the molality of a hydrochloric acid solution that is 26.4% by mass and has a density of 1.19 g mL^-1
Explain how many mg of the radioisotope : Fluorine 18, which has a half live of 110 min, is used in PET scans. If 100 mg of fluorine 18 is shipped at 8am, how many mg of the radioisotope are still active if the sample arrives at 130 pm

Reviews

Write a Review

Econometrics Questions & Answers

  How do i calculate economic profit

Over the past year Sonya bought $10,000 worth of cards. She sold these cards for $58,000. Sonya rents a shop for $5,000 a year and spends $1,000 in utilities. Sonya owns a cash register which she bought for $2,000 with savings. Her bank pays 3% a ..

  What is the highest level of y that can still be met

Consider the following information. For Group A the cost of attaining an educational level is CA(y)=$6,000y and for Group B this is CB(y)=$10,000y. Employees will be offered $50,000 if they have y

  Which variables are endogenous and exogenous

Suppose the national-income model: Y = C + I + G C = a + b(Y - T)(a > 0; 0 0; 0

  How would the imposition of the tax on buyers be illustrated

Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1,500. How would the imposition of the tax on buyers be illustrated.

  Establish the equation which describes the contract curve

There are two consumers, A and B. A's preferecne is represented by uA(xA1,xA2)=4ln(xA1)+3ln(xA2) and B's preference is represented by uB(xB1,xB2)=3ln(xB1)+5ln(xB2). A's initial holding is (wA1,wA2)=(12,4) and B's initial holding is (wB1, wB2)=(8,1..

  Can we conclude from the bet that geoff is risk-averse

Geoff and Hank are friends who are attending a "casino night" at a charity fundraiser. The event costs $100 to get in, which they have already paid. Once inside, there's a table at which you can gamble: for $10, you can flip a coin.

  Does a strike for a 50-cent raise make any sense

What kings of long-term benefits and/or costs result from such a strike? Draw some assumptions. Maybe the variables are what is the current wage and how long the strick will last, how much money will be lost.

  Is pledging 50 dollars a dominated strategy for you

Recall the espresso machinecontribution game discussed in class. You and your roommate may by an espresso machine for $50. Your value for havingthe espresso machine is $40 and your value for not having it is zero.

  What is the firms total profits and total cost

Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.

  What is the expenditure function

Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a. Derive the Marshallian demand functions. b. What is the expenditure function? c. What is the direct utility function?

  What is the marginal cost of flying an additional mile

What is the Marginal cost of one more passenger on a 1,200 mile flight if there are between 250-300 passengers. If the number of passengers is 300 and the flight is between 1,200 and 2,500 miles, what is the marginal cost of flying an additional mi..

  Is the demand curve elastic or inelastic

a price change causes the quantity demanded of a good to decrease by 30percent , while the total revenue of that good increases by 15 percent . is the demand curve elastic or inelastic explain.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd