What is the marginal revenue at the price computed in part

Assignment Help Managerial Economics

Reference no: EM13245670

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? 4- Unique Creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC = $100,000+ 20Q a) what is the marginal cost for Unique? b) If the price elasticity of demand for Unique is currently -1.5, what price should Unique charge? c) what is the marginal revenue at the price computed in part (b)? pe your homework question here, such as "Help me understand this chemistry problem..."

Reference no: EM13245670

Questions Cloud

How banks are financial intermediaries : Explain how banks are financial intermediaries. What are reserves? What are excess reserves? Explain how the Fed can affect the quantity of excess reserves in the banking system

What is the socially optimal number of years of education : The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year of education has a marginal external benefit to society equal to $8,000.

Who can produce any linear combination of chickens : Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes

What is the mass of the unknown element : A sample containing beryllium (atomic mass 9 u), aluminum (27 u), and an unknown element is placed in a mass spectrometer, What is the mass of the unknown element

What is the marginal revenue at the price computed in part : 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..

What advice would give to friend under the circumstances : In the following year, your friend asks for your help again. All of the data remain the same; however your friend finds that she is no longer profitable in the spring, summer, or fall months. What advice would you give to her under these circumsta..

Compare and contrast the wacc to this basic accounting : Compare and contrast the WACC to this basic accounting equation. does the WACC contain a profit component? how does the WACC relate to the discount rate used in a net present value NPV computation, using a case where NPV equals zero to make your poin..

What is the electron velocity when it strikes other plate : An electron is released from rest at the negative plate between two 10.0 cm long parallel plates separated by 1.00 cm, What is the electron's velocity when it strikes the other plate

Define each of the variables or terms in this equation : Assume that a projent has a negative NPV of $500 and an IRR of 10%. Is the discountrate used to calculate the NPV higherthan, lower than, or equal to 10%? compare and contrast these two tecniques using this example and focusing on IRR when NPV is pos..

User Account

All Pages