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please explain how to do the math with equations and corresponding explanations for values for #3, 4, and 5. Thank you in advance for your
please explain how to do the math with equations and corresponding explanations for values for #3, 4, and 5. Thank you in advance for your help
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 - 40 MR = 360 - 8Q MC =40 1) Refer to Scenario 10.9. What level of output maximizes the sum of consumer surplus and producer surplus? A)0 P = MC B) 30 360- 4Q= 4Q (45 D) 60 360 = 8Q E) none of the above 45 = Q 2) Refer to Scenario 10.9. What is the profit maximizing level of output? A)0 MR = MC B) 30 C) 45 360 - 8Q = 4Q D) 60 360 = 12Q E) none of the above 30 = Q 3) 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 4) Refer to Scenario 10.9. At the profit maximizing level of output, what is the level of producer surplus? A) 0 B) 1,800 1 5400 D) 7,200 E) 9,600 5) Refer to Scenario 10.9. At the profit maximizing level of output, what is the deadweight loss? A)0 B) 450 C1 909- D) 1,800Step by Step Solution
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