Suppose P = 20 − 2Q Is the Market Demand

Multiple Choice

Suppose P = 20 − 2Q is the market demand function for a local monopoly.The marginal cost is 2Q.The local monopoly tries to maximize its profits by equating MC = MR and charging a uniform price.What will be the equilibrium price and output?

A) $6.33, 3.33 units
B) $6.33, 5 units
C) $13.33, 3.33 units
D) $10, 5 units