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DeBeers controls about 35% of the diamond gemstone industry, according to Time Magazine, November 2010.
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Why do governments regulate natural monopolies?
Certain types of monopolies exist and are allowed in a free market system. Here are some examples: * When a patent is granted to, as example, a drug company, for a new drug, the company has sole rights to the manufacture of the drug for 17 years. Thus this company has a legal and natural monopoly; * A key resource is owned by a single company. A clear instance of this is found by examining the De Beers company. De beers owns over 80% of the world's diamond mines and production. This is a rare form of monopoly however; and * A natural monopoly begins when a single company can supply an entire market at a lower cost than can two or more other companies. Common examples of this are utility companies. It should be noted however, that in these cases, a regulatory body must give the utility permission to raise prices.
Who controls more than 80 percent of the world's rough diamond supply?
De Beers
If De Beers can price discriminate perfectly to which customers will sell diamond and at what price?
Any diamond, reagardless of the seller, is worth the price that any buyer will pay for it.
What examples are companies that formed a monopoly?
A monopoly is formed when one company, or person, is the only supplier of a certain thing or service. Some examples of monopolies include Standard Oil, US Steel, Western Union, AT&T and De Beers.
What form of legal monopolies still exist today?
Perhaps a better question might be "why do monopolies arise" however the current question will do just fine. And better yet, why can they arise in a democratic nation. Here is a summary that answers the monopoly question:A. A monopoly is a company that is the sole seller of a product without close substitutes. A monopoly is able to remain as such in a market only if there are barriers to entry of that market. Basically we have a situation where other companies cannot compete with the monopoly company. There are several reasons for these barriers in an open market society:A1. A key resource of a product is owned by one company. This is rare but as an example, De Beers owns 80% of the diamond mines in South Africa and thus controls the diamond market.A2. The government has given the monopoly company the sole exclusive rightto produce & sell a product. This is common but the monopoly has a 20 year time limit because the US Patent Office has awarded the company a patent. The long term benefit of patent laws is to enhance creativity and intellectual achievement.A3. A natural monopoly arises when a single company can supply a good such as water at a lessor price than two or more other companies can. ( here we have a government overseer dept. to safeguard a runaway market ).
What is De Beers famous for?
DeBeers are the diamond people in South Africa, they mine and they also broker, in one word they have the monopoly on the diamond industry, they are world famous, when you say "DeBeers" you know you mean diamonds.
Who regulates the diamond market and the diamond companies?
DE BEERS WHO regulates the diamond market
What is true regarding de beers diamond mines?
You can follow the link, below, and decide for yourself what is true regarding De Beers diamond mines.
Who was the founder of De Beers?
Cecil Rhodes was the founder of De Beers, a diamond mining company in South Africa. Rhodes founded De Beers in 1888 and played a significant role in the development of the diamond industry.
What are the De Beers?
De Beers is a collection of companies that in the past, has dominated the diamond, diamond mining, diamond shops, diamond trading and industrial diamond manufacturing sectors. Since about June 2013, DeBeers no longer controls market demand the supply of any kind of diamonds.
What are the release dates for De Beers Diamond Mines Kimberly S-A- - 1907?
De Beers Diamond Mines Kimberly S-A- - 1907 was released on: USA: November 1907
What is the brand name for the tagline 'a diamond is forever'?
De Beers
The motto a diamond is forever was coined by which company?
De beers
What is the name of the world's largest cut diamond at the natural history museum?
The 203.04-carat flawless De Beers Millennium Star,UpdateThe Millenium Star was available for viewing at the Smithsonian Natural History Museum in 2003, but has since been returned to De Beers.The largest cut diamond permanently on display there is the 42-plus carat blue diamond, The Hope diamond.
Why do governments regulate natural monopolies?
Certain types of monopolies exist and are allowed in a free market system. Here are some examples: * When a patent is granted to, as example, a drug company, for a new drug, the company has sole rights to the manufacture of the drug for 17 years. Thus this company has a legal and natural monopoly; * A key resource is owned by a single company. A clear instance of this is found by examining the De Beers company. De beers owns over 80% of the world's diamond mines and production. This is a rare form of monopoly however; and * A natural monopoly begins when a single company can supply an entire market at a lower cost than can two or more other companies. Common examples of this are utility companies. It should be noted however, that in these cases, a regulatory body must give the utility permission to raise prices.
Who bought the enormous de beers diamond in the early 19th century?
fdfhg
What percentage of the world's diamond production is controlled by De Beers?
From the www.wikipedia.com :) URL is http://en.wikipedia.org/wiki/DeBeers_Diamond_Corporation Excerpt follows: The various companies within De Beers Diamond Corporation are responsible for around 40% of world diamond production by value.... The sales & marketing arm of De Beers is a company called the Diamond Trading Company (DTC). This company sells almost half of the world's rough diamonds by value...
