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

question 28

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

---

Definitions:

Draw Key

A type of key, often made of metal, used to secure components together by fitting into a corresponding slot or recess, commonly found in mechanical and engineering applications.

Jam Nut

A type of thin nut used to lock another nut by being tightened against it, mainly in situations where vibration might loosen the nuts.

Kingpin

A central pivot in the steering mechanism of a vehicle, crucial for the steering system.

Snap Rings

Retaining rings inserted into a groove to hold components in assembly, often used in mechanical devices to secure parts in place.