@& Safari File Edit View History Bookmarks Window Help ng.cengage.com % Cengage Learning 2% MindTap - Cengage Learning B course Hero Resurm LT :W CENGAGE ' MINDTAP Q search this course Module Seven Quiz @ X 4. Oligopolies and Cartels PROFILE 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: ORDERS Price Quantity (Dollars) (Diamonds) 8,000 5,000 RENTALS (SSLLEI 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 Study Tools 3,000 10,000 2,000 11,000 College Success Tips 1,000 12,000 Career Success Tips 0 Help If there were many suppliers of diamonds, the price would be $ per diamond and the quantity sold would be diamonds. If there were only one supplier of diamonds, the price would be & per diamond and the quantity sold would be diamonds. | E" SIGN O Suppose Russia and South Africa form a cartel. In this case, the price would be & per diamond and the total quantity sold would be diamonds. If the countries split the market @& Safari File Edit View History Bookmarks Window Help ng.cengage.com 7+ Cengage Learning 2% MindTap - Cengage Learning B course Hero Resurm LT :W CENGAGE ' MINDTAP Q search this course Module Seven Quiz @ X 1,000 12,000 PROFILE ORDERS If there were many suppliers of diamonds, the price would be & per diamond and the quantity sold would be diamonds. ISR B If there were only one supplier of diamonds, the price would be per diamond and the quantity sold would be diamonds. COURSES v Suppose Russia and South Africa form a cartel. In this case, the price would be & per diamond and the total quantity sold would be diamonds. If the countries split the market evenly, South Africa would produce diamonds and earn a profit of SLEACTIS If South Africa increased its production by 1,000 diamonds while Russia stuck to the cartel agreement, South Africa's profit would tos College Success Tips Why are cartel agreements often not successful? Career Success Tips One party has an incentive to cheat to make more profit. 1T All parties would make more money if everyone increased production. Different firms experience different costs. iy Continue without saving