Could somebody explain the following in English? Watch

redkopite
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q1 = Q(p1) , profit1 = (p1 – c)Q(p1)

I understand the gist of it, that profit = p-c, however whats confusing me is the "P1" inside the brackets afta the Q

Is there a difference between the small q and the Capital Q? I am guessing that q1 is the quantity supplied of firm 1, Q is total market supply, so Q(p1) means the quantity supplied at a price p1? (i.e the supply of firm 1, because p1 is the price of firm 1, so Q at p1 is quantity supplied at p1?)

ok i think i may have just answered my own question :erm: could somebody tell me if its correct? thanks
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J234
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(Original post by redkopite)
q1 = Q(p1) , profit1 = (p1 – c)Q(p1)

I understand the gist of it, that profit = p-c, however whats confusing me is the "P1" inside the brackets afta the Q

Is there a difference between the small q and the Capital Q? I am guessing that q1 is the quantity supplied of firm 1, Q is total market supply, so Q(p1) means the quantity supplied at a price p1? (i.e the supply of firm 1, because p1 is the price of firm 1, so Q at p1 is quantity supplied at p1?)

ok i think i may have just answered my own question :erm: could somebody tell me if its correct? thanks
Yep, I think you're right.

q1 = Q(p1)
q1 = quantity supplied at price p1

profit1 = (p1 – c)Q(p1)
profit1 = (p1 – c)*q1
profit = (price - cost) * quantity supplied at price p1
profit = Profit per item * number of items
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