Q. A large share of the world supply of diamonds comes from Russia also South Africa. Assume which the marginal cost is constant at $1000 per diamond also the demand for diamonds is Elucidated by the subsequent schedule:

Price Quantity
$8000 5000
$7000 6000
$6000 7000
$5000 8000
$4000 9000
$3000 10000
$2000 11000
$1000 12000

a. If there were many suppliers of diamonds, Illustrate what would be the price also quantity?

b. If there was only one supplier of diamonds, Illustrate what would be the price also quantity?

c. If Russia also South Africa formed a cartel, Illustrate what would be the price also quantity? If the countries split the market evenly, Illustrate what would be South Africa's production also profit? Illustrate what would happen to South Africa's profit if it increased its production by 1000 while Russia stuck to its cartel agreement?

d. Utilize your answer to part (c) to elucidate why cartel agreements are often not successful.