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The Monopolist's decision: price, profit and welfare

Welcome!

This app simulates the impact of your output decision on your profit but also on consumer surplus and welfare. Lost? Please look at the Help section.

Show Profit-Max. outcome (M)

Show Welfare-Max. outcome (C)

Display AC curve

The top (resp. bottom) area depicts Consumer (resp. Producer) surplus. If price < MC, the shaded area depicts negative surplus.

Show Profit-Max. outcome (M)

Show Welfare-Max. outcome (C)

Hint: the vertical segment measures the level of profit (TR-TC).

Show Profit

Show PS

Show CS

Show TS

The Monopolist's decision: price, profit and welfare