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Just trying to check if there is an error in the options given in an exam paper I am working through: The question is :
Just trying to check if there is an error in the options given in an exam paper I am working through:
The question is:
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 = 50 - 5Q
MR = 40 - 3Q
MC = 2
(1) What is the profit-maximising level of output?
(Please show calculations)
(2) At the profit-maximising level of output, what is the level of consumer surplus?
(Please show calculations)
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