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Linear Monopoly Pricing Calculator

A single seller faces P = a − bQ and constant marginal cost MC. Use a > MC and b > 0.

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Linear Monopoly Pricing Calculator

A single seller faces P = a − bQ and constant marginal cost MC. Use a > MC and b > 0.

Q* = (a − MC)/(2b); P* = (a + MC)/2; profit = Q* × (P* − MC).

Educational model only. Fixed costs, capacity constraints and price discrimination are excluded. This is not a market quotation or pricing recommendation.

Numbers are rounded to 10 significant digits for display.

Calculations stay in this browser. Inputs are not uploaded or saved.

Method source

A QUICK WALKTHROUGH

How to use this tool

  1. Enter the inputs using consistent units.
  2. Calculate and review the model result.
  3. Change any input to clear the previous result.

Model and scope

Q* = (a − MC)/(2b); P* = (a + MC)/2; profit = Q* × (P* − MC). Educational model only. Fixed costs, capacity constraints and price discrimination are excluded. This is not a market quotation or pricing recommendation.

Method source

https://openstax.org/books/principles-microeconomics-3e/pages/9-2-how-a-profit-maximizing-monopoly-chooses-output-and-price

Calculations stay in this browser. Inputs are not uploaded or saved.

Calculations stay in this browser. Inputs are not uploaded or saved.

GOOD TO KNOW

Common questions

What does this result mean?

Educational model only. Fixed costs, capacity constraints and price discrimination are excluded. This is not a market quotation or pricing recommendation.