Production decisions and economic profit
Economic profit vs. accounting profit. Average total cost (ATC) and marginal cost (MC). Marginal product of labor (MPL). Price discrimination.
This course contains 6 segments:
Introduction to production and costs
When a firm produces output, it combines the factors of production to produce that output. In this lesson, learn about how we can represent the production process mathematically, and then use that process to generate the costs of production.
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!
Production and costs in the long run
In this lesson, learn about the production costs in the long run. Topics include the long run average total cost curve, economies of scale, minimum efficient scale, and the relationship between minimum efficient scale and competition
Types of profit
Economic profit and accounting profit are two different things (the difference being that economic profit takes into account opportunity cost). Confused? This tutorial lays it all out with the example of a restaurant.
Profit maximization
In this lesson, we introduce a rule that a firm can use to maximize profits, as well as the intuition behind that rule.
Firm entry, exit, and the shut-down rule
Firms' decisions to enter or exit a market depends on whether or not a firm can make a profit. Learn about the conditions under which firms enter and exit markets, and when to shut down, in this lesson
Get a Reminder
Rating | Not enough ratings |
---|---|
Length | 6 segments |
Starts | On Demand (Start anytime) |
Cost | Free |
From | Khan Academy |
Download Videos | On all desktop and mobile devices |
Language | English |
Subjects | Business Social Sciences |
Tags | Economics-Finance-Domain Microeconomics |
Get a Reminder
Similar Courses
Careers
An overview of related careers and their average salaries in the US. Bars indicate income percentile.
Personal Trainers-Total Body Stretch Service Provider $23k
Total Body Stretch Service Provider ($15 an hour + tips) $26k
Personal Trainers/Athletic Trainers for Total Body Stretch $34k
Total Rewards Administator $57k
Senior Claims Representative - Total Loss $62k
Staff Spine and Total Joint Center Charge Nurse/CNC-Spine Service $72k
Total Project Manager $77k
Senior Regional Human Resources Analyst, Total Rewards $81k
Communication Specialist - Total Rewards $84k
Total Rewards Leader, Acquisition & Divestiture $96k
Total Rewards Project Manager $112k
Total Product Support Engineer 2 $114k
Write a review
Your opinion matters. Tell us what you think.
Please login to leave a review
Rating | Not enough ratings |
---|---|
Length | 6 segments |
Starts | On Demand (Start anytime) |
Cost | Free |
From | Khan Academy |
Download Videos | On all desktop and mobile devices |
Language | English |
Subjects | Business Social Sciences |
Tags | Economics-Finance-Domain Microeconomics |
Similar Courses
Sorted by relevance
Like this course?
Here's what to do next:
- Save this course for later
- Get more details from the course provider
- Enroll in this course