Ask Question
19 August, 14:03

The De Beers Company, one of the longest-lived monopolies, is facing increasing competition. One source of competition comes from people who might resell their previously owned diamonds. Why is De Beers worried that people might resell their previously owned diamonds?

+2
Answers (1)
  1. 19 August, 17:47
    0
    De Beers is worried that people might resell their previously owned diamonds because previously owned diamonds would be a close substitute to newly mined diamonds and therefore reduce De Beers' market power.

    Explanation:

    A single company selling the unique product with no competition is known as monopoly. The company is sole seller of the product. The company is free of competition and decides the price of the product with full freedom.

    De Beers Company is a monopoly company dealing with diamonds. They were monopoly for long time. In recent days they are facing increasing competition due to resale of diamonds by the previously owned customers. The company's market power is reduced as the previously owned diamond is close to newly mined diamond.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The De Beers Company, one of the longest-lived monopolies, is facing increasing competition. One source of competition comes from people ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers