Multiple Choice
The demand equation for a good produced by a monopolistically competitive firm is P = 10 - Q. 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 two units
B) $7 and three units
C) $6 and four units
D) $5 and five units
Correct Answer:
Verified
Correct Answer:
Verified
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