Part 3: Short Answer Questions. Please BRIEFLY answer the following question. (5 points) 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 the demand for diamonds is described by the following schedule: [Please explain and show your steps.] Price Quantity $8,000 5,000 diamonds 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 3,000 10,000 2,000 11,000 1,000 12,000 1. If there were many suppliers of diamonds, what would be the price and quantity? 2. If there were only one supplier of diamonds, what would be the price and quantity? 3. If Russia and South Africa formed a cartel, and the countries split the market evenly, what would be South Africa's production and profit?
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Price: $8,000, $7,000, $6,000, $5,000, $4,000, $3,000, $2,000, $1,000 Quantity: 5,000 diamonds, 6,000 diamonds, 7,000 diamonds, 8,000 diamonds, 9,000 diamonds, 10,000 diamonds, 11,000 diamonds, 12,000 diamonds Show more…
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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: 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, what would be the price and quantity? If the countries split the market evenly, what would be South Africa's production and profit? What would happen to South Africa's profit if it increased its production by 1,000 while Russia stuck to the cartel agreement? d. Use your answers to part (c) to explain why cartel agreements are often not successful.
Use the equations below which represent the sample price y (in hundreds of dollars) of diamonds of x carats with different grades of flawlessness. CAN'T COPY THE TABLE A two-carat diamond is selling for the wholesale price of $\$ 55,000 .$ The diamond is described as having the highest quality. Describe the region in the graph that contains the point $(2,55,000) .$ Is this the highest quality for a two-carat diamond? Explain.
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A company manufactures and sells diamond-encrusted cell phone cases. The weekly price-demand and total weekly cost equations are shown below: x ≥ 0. p(x) = 1000 - 1/2x C(x) = 5000 + 600x Answer the following questions based on these equations: (a) Write the equation for total revenue, R(x). (b) Write the equation for total profit, P(x). (c) To maximize the revenue, what price should be charged for each case and how many cases should be produced and sold? (d) To maximize the profit, what price should be charged for each case and how many cases should be produced and sold?
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