For K-12 Students · Monopoly Pricing
Monopoly Pricing for a subsidy
Built for k-12 students learning it in middle or high school. Watch the idea come alive with plain-language steps and everyday examples — perfect for projects and homework. Simulate a subsidy live below — adjust the inputs and watch it respond, right in your browser.
Monopoly PricingLive
market power & deadweight loss
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Presets
A monopolist maximizes profit where marginal revenue equals marginal cost — then charges the price the demand curve allows. Because MR lies below demand, the monopoly produces less and charges more than a competitive market (where price equals MC). The red triangle is the deadweight loss: mutually beneficial trades that never happen.
Data Inspector
Monopoly price$65.0
Monopoly qty35.0
Competitive qty70.0
Deadweight loss613
Profit1225
Governing equation
Reading this result: At MC = $30, the monopolist makes 35 units and charges $65 — a $35 markup over cost. That output is exactly half the competitive 70, and the shaded triangle (613) is the welfare lost to that restraint.
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Frequently asked questions
- Is this good for k-12 students?
- Yes — this version of "Monopoly Pricing for a subsidy" is framed for k-12 students learning it in middle or high school. Watch the idea come alive with plain-language steps and everyday examples — perfect for projects and homework.
- Do I need to install anything?
- No. It runs in any modern browser, free, with no account required.