Given that the monopolist demand curve is Qd=200-2P, TC=#900 and P= #55. What is the total profit?
To find the total profit for a monopolist, we need to calculate the total revenue and total cost, and then subtract the total cost from the total revenue.
Total Revenue (TR) can be calculated by multiplying the price (P) by the quantity demanded (Qd). In this case, the demand curve equation is given as Qd = 200 - 2P.
To find the quantity demanded at P = $55, we substitute this value into the equation:
Qd = 200 - 2(55)
Qd = 200 - 110
Qd = 90
So, the quantity demanded (Qd) is 90 units.
Now, we can calculate the total revenue (TR):
TR = P * Qd
TR = $55 * 90
TR = $4950
Next, we need to calculate the total cost (TC), which is given as $900.
Finally, we can find the total profit (π) by subtracting the total cost (TC) from the total revenue (TR):
π = TR - TC
π = $4950 - $900
π = $4050
Therefore, the total profit for this monopolist is $4050.