Demand Equation for a Good Produced by a

Multiple Choice

Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 6­3
(Demand Equation) If the firm's marginal cost is a constant $2
Per unit, what price will it charge and how many units will it
Produce if it maximizes its profits?

A) $8 and 2 units
B) $7 and 3 units
C) $6 and 4 units
D) $5 and 5 units