Reid has determined that the daily demand for doughnuts at his favorite bakery is described by the following equation: Qd = 3,300 - 3000P where Qd is the daily quantity demanded in  number of doughnuts and P is the price per doughnuts in dollars.  a. What is the point price elasticity of demand at a price of $0.70?  b. Assume the price is currently $0.70. What is the marginal revenue obtained by selling one additional doughnut? c. The marginal cost of producing an additional doughnut is $0.10. What price should the bakery establish in order to maximize profits?

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