Economic Profit vs Accounting Profit

[blessns]

This video's perspective is so narrow that it is fantasy. In the real world not all firms look to maximize profit and rationality is not measured by money. I understand the economic point in video (opportunity costs) but it is so theoretical as to be useless because it throws out half of the real world economics..

[I0lcatz]

why didn't you just keep your job as a doctor?

[senoner90]

why making things so complicated? In one job you earned $150,000 in the other job $50,000 so of course the first job was better than the second one by $100,000 why making everything so complicated?

[Hibryd7]

What you left out is that the doctor has seen so much senseless pain and human suffering and confusion as a doctor that the only thing he wants is to leave that world, that way of thinking behind and operate a bustling yet simple restaurant in the chance he might one day forget how big and horrifying the world is and the innumerable problems it poses.

If you're making money but your suicidal, whats the point?

[ImSoOffended]

you've misspelled "labour"

[vickiormindyb]

I don't know for sure, but is there a Quantum Mechanics that starts at a level a high school graduate of Math can do?

I think string theory is part of a Quantum Mechanics concept, and I don't understand string theory at all.

[Geromkillersk8]

What program do u use for this? ;)

[yarisblack]

Economic view is somehow weird since you have to add thing that you didn't actually do.

Is this what we called taking a decision ?

[89savant]

Nice video. You pay low wages. I know it's made up, but $100,000 would staff four minimum wage grunts.

[AngelAsh666]

@89savant haha this made me smile :)

[IllegallySniped]

Why didn't I have this guy for my Economy Class in High School... I might have actually paid attention...

[mnljh711986]

he forgot to add the utilities to the expense list gas bill, electricity water and so on in that case he won't make any profit , however with that pointed out this is a good generalization in basic economics

[RJForce]

@mnljh711986 That was such a petty criticism. This was a toy example, you can't possibly expect him to put every cost down.

[mnljh711986]

@RJForce I wasn't criticizing I was just making an observation ,I know its supposed to be just an example of sorts and if you'll recall correctly I did state that it was a good one at that so don't be so hypersensitive I wasn't trying to be insulting

[RedEagle575]

@mnljh711986 adding to what RJForce said, utilities are an explicit cost, which generate "receipts" and are part of your accounting profit, which only cares about the receipts, no implicit costs.

[mnljh711986]

@RedEagle575 youtube is sometimes confusing on the replies I'm the one that mentioned the utilities not RJForce

[HigherPlanes]

interesting stuff.

[jbr003gmc]

In this situation, the positives of negative economic profit are job creation and providing work to other companies.

[raikkonenowns1]

Another thing that has to be considered is the long affects of both of these .. in year 4 of 5 of the restaurant, the accounting profit ur making could be something like 400000, which will most likely be greater than the salary a doctor would get, so it all depends :) .. good video though

[12s89]

HeRp DeRp

[epikTm]

i love this :D

[MoveRed]

Thanks well spoken thumbs up!

[napillnik]

So if you have a limited resource - your time, which you have to divide across different sources of income, you need to measure the accounting profit from each hour you can provide, and then go straight to this: en wikipedia org/wiki/Operations_research

[napillnik]

This generally works, but only in simple cases. Imagine you had 5 business opportunities which don't consume your whole time during the day, and can't be extended to a full day. You can't just add and subtract this time. Money is just a measurement of value. Value is productivity*time. Productivity is a relatively constant value, so time is what you've got to measure. Calculating the hourly profit will get you to operational research, which is what you want in complex, real life situations.

[torment3d]

Your videos are awesomely informative in laman's terms. Kudos!

[vickiormindyb]

Will you do something about penny stocks?

Since my friend isn't going to tell me, and he's working with them, I'd like to know what they are. At least in terms of a working definition.

[FrankiePoker]

@vickiormindyb His videoes on finance to do with stocks should be appropriate.

[Sarcasmrules4]

@khanacademy can you do video(s) on something like quantum mechanics/ particle physics. Profit for the Win

[vickiormindyb]

@Sarcasmrules4 I hope not. Some doctor once told me that I "have no mind for quantum mechanics."

I'm glad he's gone.

Nobody believed I could do ANYthing until Sal came along and, by not thinking that way about me, I got farther than an 8th grade level in my math.

I had an accident that took away all my knowledge. I had to start with 3rd grade math and work upward.

[Sarcasmrules4]

@vickiormindyb sorry, it's something I have a profound interest in

[alauc]

Mr. Khan what Are from your point of view independent variables that explain the profitability variance? For me they Are moral, intelektuall, social, physical, and financial capital and just in sucu order!

[alauc]

Mr

[billyzelsnack]

My economic profit is always negative and I am happier because of it.

[NZSideways8]

@billyzelsnack So you could be better off elsewhere, why is that making you happy?

[phuckerz]

@billyzelsnack Same for me, money will not make me happy as much as satisfaction! thumbs up~

[kripis0]

What tablet you use for all this?

[gir240]

my god wow ive been trying to look in to sopa and came out with nothing and u helped so much

NO MORE SOPA