De Beers is worried that people might resell their previously owned diamonds <u>because previously owned diamonds would be a close substitute to newly mined diamonds and therefore reduce De Beers' market power</u>.
<u>Explanation</u>:
A single company selling the unique product with no competition is known as monopoly. The company is sole seller of the product. The company is free of competition and decides the price of the product with full freedom.
De Beers Company is a monopoly company dealing with diamonds. They were monopoly for long time. In recent days they are facing increasing competition due to resale of diamonds by the previously owned customers. The company’s market power is reduced as the previously owned diamond is close to newly mined diamond.
Answer:
$17,000
Explanation:
Fair market value before casualty is $17,000 while Fair market value after casualty is none. The starting point for the calculation of loss deduction will be based on the fair market value before casualty which is $17,000.
Answer:
C. a movement down along the supply curve for that good.
Explanation:
A decrease in price would lead to a decrease in the quantity supplied and a movement down along the supply curve.
This is in accordance to the law of supply which says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Answer:
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