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Average costs (ATC, MC) and marginal revenue (MR)

4 videos
In this tutorial, Sal uses the example of an orange juice business to help us understand the ideas of average total cost (ATC), marginal cost (MC) and marginal revenue (MR). We then use this understanding to answer the age-old question, "how much orange juice should I produce?" Finally, we use these ideas to construct a long-run supply curve. A must watch if you're interested in making juice!

Marginal cost and average total cost

VIDEO 7:40 minutes
Looking at marginal and average total cost in the context of a juice business

Marginal revenue and marginal cost

VIDEO 6:10 minutes
Thinking about a rational quantity of juice to produce

Marginal revenue below average total cost

VIDEO 5:55 minutes
Why it is rational to produce at a loss

Long term supply curve and economic profit

VIDEO 8:26 minutes
Understanding the long term supply curve in terms of economic profit