If Russia and South Africa formed a cartel what would be the price and quantity?

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose Show more Question 1 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 $1000 per diamond and demand for diamonds is described by the following schedule: Price Quantity $8000 5000 diamonds $7000 6000 diamonds $6000 7000 diamonds $5000 8000 diamonds $4000 9000 diamonds $3000 10000 diamonds $2000 11000 diamonds $1000 12000 diamonds If there were many suppliers of diamonds what would be the price and quantity? If there were only supplier of diamonds what would be the price and quantity? 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 Africas profit production and profit? What would happen to South Africas profit if it increased its production by $1000 while Russia stuck to the cartel agreement? Use your answers to part c to explain why cartel agreements are often not successful. Show less

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