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Scenario 10.9: Maui Macadamia Inc. Has a Monopoly in the Macadamia Nut

Question 110

Multiple Choice

Scenario 10.9:
Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows:
P = 360 - 4Q MR = 360 - 8Q MC = 4Q
-Refer to Scenario 10.9. At the profit maximizing level of output, what is the level of consumer surplus?


A) 0
B) 1,800
C) 2,700
D) 3,600
E) 4,800

Correct Answer:

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