The only seller in the market. Same costs as a competitive firm, but it sets price by holding output back.
Demand:
Step 1 — Output
Produce where MR = MC
Step 2 — Price & profit
Price up to demand; profit = (price − ATC) × output
Demand (price)
Marginal revenue
MC
ATC
Profit
Lost trades
Price = $59 | Output = 5.2
ATC = $41 TR = $306 TC = $213
Profit = +$93
set automatically where MR = MC
← less output | more output →
Work through the two steps using the buttons above the graph.
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