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    suboptimal output

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    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 October 9, 2019, 4:10 pm ad1c9bdddf
    https://brainmass.com/economics/pricing-output-decisions/suboptimal-output-24659

    Solution Preview

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    In the short-run, competitive market, profit is maximized when
    MC (Marginal Cost) = P (price)
    hence, 2Q = 100 ==> Q = 50 is ...

    Solution Summary

    Calculate the profits that Ohio Bag is losing through suboptimal output.

    $2.19