3.Use the demand schedule for diamonds given as follows. The marginal cost of producing dianionds is constant at $100. There is no fixed cost.
a.If De Beers charges the monopoly price, what is the monopoly price? How large is the individual consumer surplus that each buyer experiences at this monopoly price? Calculate total consumer surplus by summing (lie individual consumer surpluses. How large is producer surplus? (10%)Suppose that upstart Russian and Asian producers enter the market and themarket becomes perfectly competitive.