View the step-by-step solution to:

Problem 5 Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one very large firm-Tile King.

Problem 5
Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one very large firm-Tile King. Ajax produces a multi-headed tunnel wall scrubber that is very similar to a model produced by Tile King. Ajax has decided to charge the same price as Tile King to avoid the possibility of a price war. The price charged by tile King is $20,000.
Ajax has the following short-run cost curve:
TC=800,000 - 5,000 Q + 100Q 2
a.Compute the marginal cost curve for Ajax
b.Given Ajax's pricing strategy, what is the marginal revenue function for Ajax?
c.Compute the profit-maximizing level of output for Ajax
d.Compute Ajax's total dollar profits.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question