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

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 producer surplus?

A) 0
B) 1,800
C) 5,400
D) 7,200
E) 9,600