Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market. Why isn't the price of wholesale diamonds $10,000 per carat?

a. because the government would not allow such a high price
b. because stockholders would not allow such a high price
c. because the company would sell so few diamonds that it would earn higher profits by selling at a lower price
d. All of the above are correct.

c

Economics

You might also like to view...

Refer to Figure 26-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to

A) lower interest rates. B) raise interest rates. C) raise income taxes. D) lower income taxes.

Economics

Central banks often intervene in currency markets. This activity is called

A) managed floating. B) fixing exchange rates. C) currency warfare. D) super-pegging. E) flexible floating.

Economics