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6:10
Khan Academy
Sal Khan
Marginal revenue and marginal cost
Learn about rational production quantity using an orange juice example. The market price is 50 cents per gallon, and we want to maximize profit. We find the point where marginal revenue equals marginal cost, which is 9,000 gallons. At this quantity, we make 2 cents profit per gallon, totaling $180 profit.
Jan 24, 2012
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