The Monopoly application has the same average cost curve and marginal cost curves as the Perfect Competition application. The introductory steps explain that the difference lies with the downward-sloping demand curve and the downward-sloping marginal revenue curve.

Model Link:   Monopolistic Competition
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Printable PDF Exercises

Following the example of Perfect Competition, the first step is to find the profit-maximizing position.  You adjust the quantity produced manually to see first-hand how a firm facing a downward-sloping demand curve maximizes profits by producing where the marginal cost equals the marginal revenue.  You then use a built-in iterative procedure to automatically maximize profits.

To illustrate the behavior of the firm in a changing environment, you study how the profit maximizing quantity changes when changes in technology shift the average cost and marginal cost curves.
 

Classic Economic Models

    Contents

Microeconomics

Introduction
    Overview of Micro Models

Supply and Demand
    Basic Supply and Demand
    Who Pays a Sales Tax?
    The Cobweb Model and
        Inventory-Based Pricing

Theory of the Firm
    Perfect Competition
    Monopoly and
        Monopolistic Competition
    Price Discrimination
    The Demand for Labor

Theory of the Consumer
    Two Goods - Two Prices
    Intertemporal Substitution
    Labor Supply, Income Taxes,
        and Transfer Payments

Macroeconomics

Introduction
    Overview of Macro Models

Models in Chronological Order
    The Classical Model
    The Simple Keynesian Model
    The Keynesian IS/LM Model
    The Mundell-Fleming Model
    Real Business Cycles
    The IS/MP Model
    The Solow Growth Model

Financial Markets
    Utility-Based Valuation of Risk
    Mean-Variance Analysis:
        Risk vs. Expected Return
    Fixed Income Securities:
        Mortgage/Bond Calculator
    Growth Investments:
        Present Value Calculator

Resources