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
while Russia stuck to the cartel agreement?
d. Use your answers to part (c) to explain why cartel agreements
are often not successful.
Fig: 1