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(TURN-IN) A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that marginal cost of mining diamonds is constant at $1,000 per diamond and the demand for diamonds is described by the following schedule
a) If there were many suppliers of diamonds, what would be the price and quantity?
b) If there were only one supplier of diamonds, what would be the price and quantity?
c) If Russia and South Africa formed a cartel and split output evenly, what would be price and output produced by South Africa? (Assume cartel agreement is respected).
d) In part (c), what would happen to South Africa's profit if it increased its production by 1000 while Russia stuck to the cartel agreement?
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