De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is:
A)its exclusive ownership of South African diamond mines.
B)its patent on diamond production.
C)the perfectly inelastic demand for diamonds.
D)the engagement customs of couples in Western cultures.

Question

Quizplus · Accepted Answer

DeBeers owns the majority of South African diamond mines, and exclusive ownership of an input is one source of market power.

De Beers Accounts for Approximately 80% of Diamond Sales Worldwide