In the section "Installing Portage", the Gentoo installation docs say:
# tar xvjf /mnt/gentoo/portage-latest.tar.bz2 -C /mnt/gentoo/usr
What does this command do?
Tar is used to handle archives (historically saved on tapes).
x tells it to extract files from the archivev stands for verbosej for bzip2 archivef indicates the file nameC tells it to change directory (so the package content will be unpacked there)See also man tar.
If you ever need to know what a parameter does again, try to read the man first. The command man tar, and then doing /-C will get you to the section describing what -C stands for, which in this example represents 'change directory' (i.e. sends the results of the unpacking to /mnt/gentoo/usr).