Profit Maximizing
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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.
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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?
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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 - ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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