5–24. Assume DurableTires Corp. faces the following demand curve, P = 250 − 0.1Q. If DurableTires’ marginal cost is constant at $35, how many tires should it produce in order to maximize its profits? What’s DurableTires’ profit in this case? Should the elasticity of demand be greater, equal, or less than 1 at the profit-maximizing price and quantity?

Explain (Hint: You may use a graph to support your argument)