Class 41: Profits losses and entrepreneurs

Today, Mr Rizzo moves into the topic of entrepreneurship. He talks about the reason of people being motivated so hard to produce something productive: the profit. He specifically talks about the healthcare sector. While people are fine with prostitution to sell sex and earn more profit, people are not fine with healthcare sector to earn profit. We have to understand the reason that prevent people from choosing a cheaper alternatives instead of asking why it's so expensive. In the end of his class he reveals the magical formula of Profitability equals to the sum of rental rate, appreciation rate minus the interest cost. If the number for profitability is positive, it means we should buy that product instead of renting it.