00:01
So here, i'm first going to reconstruct the table.
00:05
So first of all, we have price and quantity.
00:07
The quantity demanded and the output here are still the same.
00:10
I'm just going to call them quantity.
00:12
And we have total cost.
00:14
So my prices are 20, 18, 16, 14, 12, and 10.
00:22
My quantity is 1, 2, 3, 4, 5, 6.
00:28
Our total costs are 10, 20, 29, 36, 40, and 42.
00:37
So i'm going to calculate profit.
00:40
And to do that, i'm first going to calculate revenue.
00:43
Now, revenue is just a product of these things.
00:46
If i multiply them together, i get how much money i'm bringing in, 56, 60, and 60.
00:53
So now i can calculate profit, because profit is revenue minus costs.
00:59
So in the first one, the profit is 10.
01:02
In the second, the profit is 16.
01:04
What i'm doing here is comparing these two...