Between 1986 and 1998 the De Beers Company Controlled the World

question 243

Multiple Choice

Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of producers restricted diamond sales to maximize profits. De Beers and its association was "the only game in town" and had what is

• A) a cartel.
• B) a duopoly.
• C) monopolistic competitor.
• D) perfect competitor.

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Definitions:

Capital Goods

Long-term assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Technological Improvements

Enhancements and innovations in technology that increase productivity and efficiency in the production of goods and services.

Additional Resources

Extra materials, finances, or personnel added to assist in the achievement of objectives.

Marginal Rate

The rate at which a certain quantity changes with respect to a change in another quantity, often used in the context of tax or interest.