The DeBeers Diamond Company, which owns most of the South African diamond production, has market power over the diamond trade. How was this market power obtained?
A) through control of a scarce resource
B) through illegal means
C) through government licensing
D) through patent protection

Question

Quizplus · Accepted Answer

DeBeers Diamond Company obtained market power over the diamond trade through control of a scarce resource - diamonds. The company controls most of the world's diamond production and distribution, allowing them to dictate prices and control supply.

The DeBeers Diamond Company, Which Owns Most of the South