Consumer Choice and Price in a Monopoly

Move the sliders to see how a monopolist’s demand curve, marginal revenue (MR), and profit-maximising price and quantity change. The monopolist chooses the output where MR = MC, then charges the price on the demand curve.

Demand MR MC (Price on vertical axis, Quantity on horizontal axis)

Sliders

Demand intercept P_max ()

Demand slope (steepness) ()

Marginal cost (MC) ()