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!
12407_Long_term_supply_curve_and_economic_profit.html
12405_Marginal_revenue_and_marginal_cost.html
All video content by Khan Academy is under their license: CC by NC SA
Website created using Khan Academy Static Downloader