De Beers Diamond Mines: The Key to Global Diamond Supply

What type of monopoly does De Beers Diamond Mines have?

a. Geographic monopoly

b. Key Resource monopoly

c. Natural monopoly

d. Government monopoly issuing patents and copyrights

Answer:

De Beers Diamond Mines is a Key Resource monopoly.

De Beers Diamond Mines is an example of a Key Resource monopoly. As the world's largest diamond producer, De Beers controls a significant portion of the global diamond supply. This gives them immense power and control over the market, allowing them to dictate prices and maintain a monopoly in the diamond industry.

This control over key resources allows De Beers to dominate the diamond market, influencing pricing and supply levels. Despite facing criticism for its monopoly practices, De Beers' stronghold on the diamond industry remains strong.

By holding a key resource monopoly, De Beers Diamond Mines plays a pivotal role in shaping the global diamond market, making it a significant player in the industry.