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28 December, 14:28

Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of producers restricted diamond sales to maximize profits. De Beers and its association was "the only game in town" and had what isA) a cartel. B) a duopoly. C) monopolistic competitor. D) perfect competitor.

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  1. 28 December, 14:36
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    The correct answer is option A.

    Explanation:

    The association of De Beers and its affiliated producers is a cartel.

    A cartel is formed by the producers in an oligopoly market, in order to protect their interests and earn higher profits. Forming a cartel is generally not legal in many countries. Cartels can be formed both formally and informally.

    Members of a cartel can fix a higher price to earn more profit.
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