Purchase Solution

Short-Run Marginal Cost of the Ohio Bag Company

Not what you're looking for?

Ask Custom Question

Q5. The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. Currently, the company is producing 40 units per period.

What is the optimal short-run output? Calculate the profits that Ohio Bag is losing through suboptimal output.

Purchase this Solution
Solution Preview

Q5. The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Economics - Short Run Marginal Cost

    200489 Economics - Short Run Marginal Cost The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. Currently, the company is producing 40 units per period.

  • suboptimal output

    24659 Calculate the profits that Ohio Bag is losing through suboptimal output. The short-run marginal cost of the Ohio Bag company is 2Q. Price is $100. The company operates in a competitive industry.

  • What four conditions characterize a competitve market? What are economic profits?

    The short-run marginal cost of the Ohio Bag Company is 2Q. Price is $100. The company operates in a competitve industry. Currently, the company is producing 40 units per period. What is the optimal short-run output?

  • Full Solutions to 3 common microeconomics review problems

    In the short run, a price increase from $1 to $2 is unit-elastic (Es=1.0). So how many popsicles will be sold each day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each?

  • Short run, long run planning for sample company

    20611 Short run, long run planning for sample company Output= 2000 unit Total Fixed Cost= $4000 Price of Labor= $80 price of Capital= $320 Marginal Product of Labor= 20 Marginal Product of Capital= 80 Price of output= $8 Long Run Marginal

  • Optimal Output for Short-Run Profit Maximization is Marginal Revenue = Marginal Cost

    649472 Optimal Output for Short-Run Profit Maximization is Marginal Revenue = Marginal Cost Why is the optimal level of output for short-run profit maximization equal to that level where marginal revenue equals marginal cost?

  • Avoidable and unavoidable costs

    Number of Units = 5000 Total Fixed Cost = 300,000 Average Fixed Costs = 300,000/5000 = 60 Total Variable Cost = 150,000 Marginal Cost = 150,000/5000 = 30 Average Total Cost = 450,000/5000 = 90 Marginal Revenue = 40 (a) In the short run company

  • how the company will respond to future changes in the keyboard market

    LONG RUN In the long run the marginal revenue should be equal to the marginal cost and the point of intersection should be above that of the average cost. That is the profit maximizing condition.

  • Production Process Multiple Choice Questions in Economics

    Which of the following statements best represents a difference between short-run and long-run cost? A. Less than one year is considered the short run; more than one year the long run. B.

View More Related Solutions