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    Marginal Cost Curve for Ajax Cleaning Products

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    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:51 pm ad1c9bdddf
    https://brainmass.com/economics/macroeconomics/marginal-cost-curve-ajax-cleaning-products-69985

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    See the attached file. Thanks

    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 ...

    Solution Summary

    The expert computes the marginal cost curve.

    $2.19