The Price of Diamonds Is High,in Part Because the Majority

question 16

Multiple Choice

The price of diamonds is high,in part because the majority of the world's diamonds are controlled by a single firm.This is an example of

• A)a market failure caused by an externality.
• B)a market failure caused by market power.
• C)a market failure caused by equality.
• D)There is no market failure in this case.

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Definitions:

Competition Among Firms

The rivalry between businesses in the same industry for customers, market share, or resources, driving innovation and efficiency.

Global Business

Involves engaging in commerce at an international level, dealing with various strategies, operations, and transactions across countries beyond domestic boundaries.

Ethical Behavior

Conduct that is morally upright, honest, and accountable, typically guided by a set of professional or societal standards.

Managing Ethical

Involves implementing practices and guidelines to ensure behaviors and decisions within an organization adhere to moral principles and standards.