Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one big firm Tile King. Ajax generates a multi-headed tunnel wall scrubber which is similar to a model produced by Tile King. Ajax decides to charge the similar price as Tile King to ignore the possibility of a price war. The price charged by Tile King is $20,000.
Ajax has the given short-run cost curve:
,000 - 5,000Q + 100Q2.
1) Compute the marginal cost curve for Ajax.
2) Given Ajax's pricing strategy, find out the marginal revenue function for Ajax?