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. What is the maximum amount that Maui Macadamia would be willing to spend in order to maintain its monopoly through rent seeking?

A) $0
B) $1,800
C) $5,400
D) $10,800