The Supply Curve is the Marginal Cost Curve

Ever wondered what is the basis of the supply curve? Well, the answer is the supply curve is the marginal cost curve. In other words, the marginal cost of individual firms (or the horizontal sum of all market participants' marginal cost curves) is the supply curve. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

[ericeisler]

Great job! You did one thing extremely well. You labeled the y axis as $/unit. Now your explanation makes sense. Most places seem to lable the y axis $, which is very ambiguous.

[qoao]

AMAZING! Can't express how excited I am when I get to 9:16 where I finally know why MC=Supply Curve. The illustration is excellent. Thank you, sir, for helping me with my Econ courses!!😀

[rook]

this is absolutely amazing! if your brain gets hurt by watching this, just be patient, rewatch, repeat the idea by yourself, make your own examples, take a sheet of paper, take notes, and just play with the graph, and eventually this will make such a big sense. good luck you all.

[UIWswimmer]

You helped me pass my graduate econ final!!! High level educator.

[ethanm]

This is literally amazing! I finally figured this whole thing out after this video

[yonussahadat]

AMAZING explanation! You just solved my confusion

[Savvyester]

Thank you - this really helped me understand after class.

[BB-mrvy]

What’s the intuition for why MC is increasing? I would have thought it would decrease due to economy of scale.

[dpbq]

This is ONLY TRUE when in perfect competition, when price sold = cost (with utility of zero). I don't know why this video doesn't mention that!

[tunehits_]

If I have the option of giving more than 1 thumbs up, oh gosh I will end up at 100.

[michaelungoco]

in what world does the marginal cost increases with producing more goods? So to produce 1 widget the cost is $1. But to increase the order from 1 to 2 units it cost $2 to produce the 2nd unit? That makes zero sense. The marginal cost should be the same to produce 1 unit or 2 units. If anything the cost should go down. Haven't you ever heard of a volume discount?

[shukurillozaylobidinov]

Very vague explanation. You have to make it simple

[silvikhairanichan]

Butuh dia ngomong indo, biar aku tambah ngerti😭

[kafrikotroll]

Got a question. Isn't it that, The marginal cost is the extra revenue from the sale of an additional unit of product ?
Ty for your help!👍