Explore BrainMass

Explore BrainMass

    Economics - Short Run Marginal Cost

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    https://brainmass.com/economics/pricing-output-decisions/economics-short-run-marginal-cost-200489

    Solution Preview

    Marginal cost = Marginal Revenue (For Optimal short-run output)

    2Q = 100

    Q = 50 is the optimal output

    Revenue = 100(40) = ...

    Solution Summary

    The expert examines the short run marginal costs of an Ohio Bag Company. Neat and step-wise solution is provided.

    $2.49

    ADVERTISEMENT