De Beers Consolidated Mines has monopoly power
A)because of economies of scale
B)through its control over key patents
C)through its control of an essential resource
D)through government-imposed barriers to entry
E)because of its reputation for supplying high-quality diamonds

Question

Quizplus · Accepted Answer

De Beers Consolidated Mines has monopoly power through its control of an essential resource, namely diamonds. De Beers controlled over 80% of the diamond supply in the 20th century, allowing them to set high prices and limit competition from other diamond producers.

De Beers Consolidated Mines Has Monopoly Power