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.© BrainMass Inc. brainmass.com March 4, 2021, 8:52 pm ad1c9bdddf
Marginal cost = Marginal Revenue (For Optimal short-run output)
2Q = 100
Q = 50 is the optimal output
Revenue = 100(40) = ...
The expert examines the short run marginal costs of an Ohio Bag Company. Neat and step-wise solution is provided.