00:01
So here we're talking about the markup, right, which is the difference between price and marginal cost, right? so it's a measure of how much profit you can squeeze out of your customers, right? if your price is close to cost, you're not getting much.
00:20
If your price is well above marginal cost, you have a big profit margin, right? so a, we want to figure out the actual price.
00:28
And to do that, we need to know the definition of the learner index.
00:32
And the learner index is a measure of markup.
00:35
It's the markup relative to the price.
00:39
So if your learner index here is 57%, right? this means that 57 % of your price is profit, right? and so you've got a very, very healthy profit margin.
00:55
So here we can back this out, right? we know that 0 .57 is price minus the marginal cost.
01:02
The marginal cost is 50, all over p.
01:06
So let's rearrange 0 .57p is equal to p minus 50.
01:12
50 is equal to 0 .43p.
01:15
P is therefore, equal to 50 divided by 0 .43.
01:24
So this would be 116 .28 .28 .8...
