Explore BrainMass
Share

# Profit Maximizing

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Use the following paragraph to analyze the 3 questions. I just don't get this one! Please show answer and reasoning:

Jones Inc. is a monopolist producing and selling a product whose demand is P= 250-6Q. The total cost of production is TC=100+34 Q+3 Q2, and the marginal cost of production is MC= 34+6Q.

In order to maximize profits, Jones Inc. should produce
A. Q=8.
B. Q=12.
C. Q=18.
D. None of the above.

The profit-maximizing uniform price per unit for Jones Inc. is
A. P=\$140.
B. P=\$106.
C. P=\$178.
D. None of the above.

If Jones were able to practice first degree price discrimination, then

A. Its total cost would be \$1684.
B. It would produce and sell more than under uniform pricing.
C. The last unit would be sold at a price equal to its marginal cost of production.
D. All of the above.

https://brainmass.com/economics/production/profit-maximizing-208259

#### Solution Preview

Jones Inc. is a monopolist producing and selling a product whose demand is P= 250-6Q. The total cost of production is TC=100+34 Q+3 Q2, and the marginal cost of production is MC= 34+6Q.

In order to maximize profits, Jones Inc. should produce
A. Q=8.
B. Q=12.
C. Q=18.
D. None of the above.

Profit = (250 - 6Q) Q - ...

#### Solution Summary

Jones Inc. is a monopolist producing and selling a product whose demand is P= 250-6Q. The total cost of production is TC=100+34 Q+3 Q2, and the marginal cost of production is MC= 34+6Q.

In order to maximize profits, Jones Inc. should produce how many units?

\$2.19