Production and costs in the short run

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!

Fixed, variable, and marginal cost

Marginal cost, average variable cost, and average total cost

Graphs of MC, AVC and ATC

Marginal revenue and marginal cost

Short-run production costs: foundational concepts

Marginal revenue below average total cost

How costs change when fixed and variable costs change

Graphical impact of cost changes on marginal and average costs

Visualizing average costs and marginal costs as slope

Short-run production costs