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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 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
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