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(millions of dollars) 8 5 40 ---- 7 6 42 2 6 7 42 0 5 8 40 –2 4 9 36 –4 3 10 30 –6 2 11 22 –8 1 12 12 –10 With marginal cost of $1,000 per diamond, or $1 million per thousand diamonds, the monopoly will maximize profits at a price of $7,000 and a quantity of 6,000. ................
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