(Solved): A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the ...

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 \( \$ 18 \) thousand per diamond. For simplioty. marginal cost = average tatal oost. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal plaoes. a) The table balow dnscrites the demand for diamonds. Fil in the TR and MR. b) If thare were many suppliers of diamonds, what would be the price, quantly and profits? \( P=50 \) thousand per diamond \( Q=0 \) thousend Profits \( =50 \) million c) If there were anly one supplier of damonds, what would be the price, quantity and profits? \( p=50 \) Fousand fer diamond \( Q=0 \) thousand Profts = \( \$ 0 \) milion d) If Russia and South Africa foemed a aaried, what woud be the price and quantay? e) If the eduntries spin the market evenly, what would be fouth Arica s production and profir? f) What woud happen to the profits of these two countries if Soun Afriea increased its productien by 6 thousand while Russia stuck to the eariel agreemenf? 9) Cartel agreements are often not successtal becesse Each frem has the incarthe is cheat on the other to get more prafits. Ary previous lacil agreament to cut back production to kesp prices high will not be honored. The cheated knows that it ioses profit atile cheator aarrs more profits, it will cheat sequentialy. Al of the above. None of the above.