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?

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Answer

All of the remaining answers are correct.

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

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because stockholders would not allow such a high price

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because the government would not allow such a high price

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Suppose that the DeBeers company faces very little competition from other firms ...

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