Why was de beers worried that people might resell their old diamonds? if people resell their old diamonds, then

a. used diamonds would not have a brand name.

b. market supply would increase, increasing market prices.

c. market competition would increase, decreasing profits.

d. de beers would become a natural monopoly.

e. de beers would not be able to gain patent protection?

Question

Lailah Yoder

Business

12 April, 09:41

Why was de beers worried that people might resell their old diamonds? if people resell their old diamonds, then

a. used diamonds would not have a brand name.

b. market supply would increase, increasing market prices.

c. market competition would increase, decreasing profits.

d. de beers would become a natural monopoly.

e. de beers would not be able to gain patent protection?

+4

Answers (1)

Know the Answer?

Giuliana Harding · Answer 1

c. market competition would increase, decreasing profits.

Explanation:

if people resell their old diamonds, then market competition would increase, decreasing profits. Introducing de beers old product into a market system will directly alter the sales of new products being developed by de beers. Their products has gained great trust among customers and even in the case of resales, a good number of needing customers would not mind as the value of Diamonds stays on the high side and this will affect market competition.