Suppose P = 20 − 2Q Is the Market Demand

question 69

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

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Definitions:

Bronchiectasis

A chronic condition where the walls of the bronchi are thickened from inflammation and infection causing permanent enlargement of parts of the airways of the lung.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply.

Cyanosis

A bluish discoloration of the skin resulting from poor circulation or inadequate oxygenation of the blood.

Hyperpnea

An increase in depth and rate of breathing, often due to increased demand for oxygen by body tissues.