How does De Beers maintain a near-monopoly on diamonds?
a. De Beers owns most of the world's diamond mines.
b. De Beers limits the number of diamonds produced at mines it does not own by controlling wholesaler access to diamonds.
c. De Beers has a 60-year old patent on cutting diamonds, and so is the only source of diamonds to U.S. jewelry stores.
d. De Beers is the only diamond manufacturer which has a license for retail sale of diamonds.
b
You might also like to view...
When a nation exports a good, its consumer surplus ________, and its producer surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; increases
The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is $1,000 for a ton of turnips, the firm is
A) making an economic profit. B) making zero economic profit. C) incurring an economic loss. D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.