What did Cecil Rhodes want to stabilize, and how did he do that?

What did Cecil Rhodes want to stabilize, and how did he do that?

• A. He wanted to stabilize diamond prices, and he did this by acquiring new diamond fields
• B. He wanted to stabilize diamond prices, and he did this by selling rough directly to retailers
• C. He wanted to stabilize diamond prices, and he did this by trying to control production
• D. He wanted to stabilize diamond prices through government subsidies

Answer: (C)

Stabilizing diamond prices was the aim, and the way he pursued it was by controlling production. Rhodes built a monopoly around South African diamond mining through De Beers and used coordinated output limits to manage how much rough diamond material could enter the market. By setting quotas, pooling supply from multiple mines, and distributing rough diamonds through a central channel, he could tighten or release supply to keep prices steadier and often higher. This production control approach is why that choice fits best: it targets price stability directly through supply management, rather than relying on simply acquiring new fields, selling directly to retailers, or subsidies.

Stabilizing diamond prices was the aim, and the way he pursued it was by controlling production. Rhodes built a monopoly around South African diamond mining through De Beers and used coordinated output limits to manage how much rough diamond material could enter the market. By setting quotas, pooling supply from multiple mines, and distributing rough diamonds through a central channel, he could tighten or release supply to keep prices steadier and often higher. This production control approach is why that choice fits best: it targets price stability directly through supply management, rather than relying on simply acquiring new fields, selling directly to retailers, or subsidies.