Linear Monopoly Pricing Calculator
A single seller faces P = a − bQ and constant marginal cost MC. Use a > MC and b > 0.
Linear Monopoly Pricing Calculator
A single seller faces P = a − bQ and constant marginal cost MC. Use a > MC and b > 0.
Result
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.
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A QUICK WALKTHROUGH
How to use this tool
- Enter the inputs using consistent units.
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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.