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

Question

Quizplus · Accepted Answer

DeBeers Diamond Company's market power is due to the control of a scarce resource, which is diamonds. They have achieved this position of dominance in the diamond industry through their control of diamond production and supply, which allows them to set prices and control market output. There is no evidence to suggest that it was obtained through illegal means, patent protection or government licensing.

The DeBeers Diamond Company,which Owns Most of the South African