Homework answers / question archive / Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market

Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market

Marketing

Share With

Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market. Why isn't the price of wholesale diamonds $10,000 per carat?

a. All are correct.

b. because the company would sell so few diamonds that it would earn higher profits by selling at a lower price

c. because stockholders would not allow such a high price

d. because the government would not allow such a high price