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QUESTION

# Suppose your firm faces a demand curve of (P = 90 - .30Q) and the marginal cost of production is $10/ unit. Find the profit- maximizing output and... Suppose your firm faces a demand curve of (P = 90 - .30Q) and the marginal cost of production is$10/ unit.

1. Find the profit- maximizing output and price.
2. Is this outcome on the elastic, inelastic, or unitary elastic part of the demand curve?

Question: I need some assistance solving the following portion of the solution...

0.3Q = 90 -P

Q = 1/0.3(90-P)

ΔQ/ ΔP = - 1/3