Problem
Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm-Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides 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 - 5,000Q + 100Q2
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
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.