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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.
- Find the profit- maximizing output and price.
- 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
