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Was X QUESTION 3 (25 Marks) CASE STUDY: THE BeBEERS DIAMOND MONOPOLY A classic example of a monopoly that arises from the ownership of a key resource is BeBeers, the South African diamond company. The company was founded in 1888 by Cecil Rhodes, an English Businessman, when he merged two of the biggest mines in the country. Rhodes then proceeded to use his profits to continue buying mines, consolidating his market power. Today, DrBeers controls about 80 percent of the world's production of diamonds. Although the firm's share of the market is not 100 percent, it is large enough to exert substantial influence over the market price of diamonds. How much market power does DeBeers have? The answer depends in part on whether there are close substitutes for its product. If people view emeralds. rubies and sapphires as good substitutes for diamonds, then DeBeers to raise the price of diamonds would cause people to switch to another gemstone. But if people view these other stones as very different from diamonds, then DeBeers can exert substantial influence over the price of its products. Answer the following question based on case study entitled "The BeBeers Diamond Monopoly" Based on the case study above, critically explain THREE (3) examples of degree price discrimination. In each case. explain why the monopolist choose to follow this business strategies aimed at charging different prices to different customers. (25 marks) Edit Format Table 12pt Paragraph BIUAL TV 1. I vivo Y20s 2022.02.19 09:39