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monopoly over world price of diamonds

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1. (Last Word) How was De Beers able to control the world price of diamonds over the past several decades even though it produced only 50% of the diamonds? What factors ended its monopoly? What is its new strategy for earning economic profit, rather than just normal profit?

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The monopoly over the world price of diamonds is considered.

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DeBeers held a monopoly over world price of diamonds over the past several decades, even though it produced only 50% of the diamonds. Barriers to entry are designed to block potential entrants from entering a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits. Barriers to entry have the effect of making a market ...

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