Monopolist's Profit Maximization

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A monopolist maximizes profit when marginal cost equals marginal revenue (). One might think that a monopolist has the pricing power to decrease quantity and increase price in order to increase profit. However, that is not true. This Demonstration shows that once a monopolist deviates from the
condition, profit decreases. You can mouseover a curve to see its definition. You can also see the price and cost per unit by mousing over the dashed horizontal lines.
Contributed by: Samuel G. Chen (March 2011)
Open content licensed under CC BY-NC-SA
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"Monopolist's Profit Maximization"
http://demonstrations.wolfram.com/MonopolistsProfitMaximization/
Wolfram Demonstrations Project
Published: March 7 2011