Oppenheimer's answer to low diamond demand in the 1930s was to?

Oppenheimer's answer to low diamond demand in the 1930s was to?

• A. Expand mining operations
• B. Shut down operations at De Beers mines
• C. Diversify into gold mining
• D. Increase marketing campaigns

Answer: (B)

When demand for diamonds falls, the smart move is to reduce supply so prices don’t drop even further and the business preserves value for the future. Oppenheimer implemented this by shutting down operations at De Beers mines, cutting rough-diamond output to match weaker demand. This supply restraint helped stabilize prices and kept the company financially healthier for when demand recovered. Expanding mining would worsen the glut, diversifying into gold isn’t aligned with De Beers’ business at the time, and marketing alone wouldn’t fix an oversupply problem.

When demand for diamonds falls, the smart move is to reduce supply so prices don’t drop even further and the business preserves value for the future. Oppenheimer implemented this by shutting down operations at De Beers mines, cutting rough-diamond output to match weaker demand. This supply restraint helped stabilize prices and kept the company financially healthier for when demand recovered. Expanding mining would worsen the glut, diversifying into gold isn’t aligned with De Beers’ business at the time, and marketing alone wouldn’t fix an oversupply problem.