Marginal revenue below average total cost | Microeconomics | Khan Academy

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Why it is rational to produce at a loss
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Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course
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[@lykitmattersanyway]

you are a great tutor. Can't thank you enough for the free explanation..

[@masouddayaghi5923]

Thanks man, you are the best tutor throughout the whole youtube.

[@batrarohit1]

juice maker: life sucks

[@globalfinanceschool]

Great video!

[@Troglor048]

@kaushiksays As awesome as this video is, you give this way too much credit.

[@diegowang9597]

at 2:39, should the cost be the rectangle from AVC instead of MC?

[@mbdanger]

Hence high fructose corn syrup.

[@ItsACaptainDan]

This is soo weird. I swear you put out videos AS SOON AS I LEARN THEM in school ._.

[@gnaples]

people pay thousands of dollars for his very material in college!

[@geoffarcher5112]

They pay for a certification from whichever institution which is then recognised elsewhere.

[@bxsed]

Why doesn't it make sense to me? Wouldn't be the actual loss $1240 if you produce? How is that better than losing only $1000?

[@johnschaffer2073]

You're still selling each unit for 0.45c, however your total average costs per unit are 0.48c. Therefore you are losing 3c every time you sell a unit. If you sell 9,000 units, you make $4,050 in sales, but your costs amount to $4,320. You end up losing a total of $270. However, if you were to do nothing and not sell any units at all - you still have the fixed cost of $1,000 to keep the machinery running. So losing $270 is the lesser of two evils in this situation.

[@amanahpasaribu9133]

8000?