{
  "id": "monopoly-welfare-loss",
  "name": "Monopoly vs perfect competition (welfare loss)",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Monopoly (HL)",
  "hl": true,
  "description": "Compared with a competitive industry (P = MC), a monopoly restricts output and raises price, creating a deadweight welfare loss and transferring consumer surplus to the producer.",
  "keywords": [
    "welfare loss",
    "deadweight loss",
    "allocative inefficiency",
    "monopoly",
    "perfect competition",
    "consumer surplus",
    "producer surplus",
    "P > MC"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/monopoly-welfare-loss",
  "previewUrl": "https://graphs.lectere.com/thumbs/monopoly-welfare-loss.svg",
  "editorUrl": "https://graphs.lectere.com/graph/monopoly-welfare-loss/",
  "params": [
    {
      "key": "mc",
      "label": "Marginal cost",
      "default": "rising",
      "type": "enum",
      "options": [
        {
          "value": "rising",
          "label": "Rising MC"
        },
        {
          "value": "constant",
          "label": "Constant MC (= AC)"
        }
      ]
    },
    {
      "key": "dwl",
      "label": "Shade welfare loss",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "surplus",
      "label": "Shade consumer and producer surplus",
      "default": false,
      "type": "boolean"
    },
    {
      "key": "pc",
      "label": "Show competitive outcome (P = MC)",
      "default": true,
      "type": "boolean"
    }
  ],
  "defaults": {
    "mc": "rising",
    "dwl": true,
    "surplus": false,
    "pc": true
  },
  "panels": [
    {
      "id": "main",
      "title": null,
      "xLabel": "Output",
      "yLabel": "Costs, revenue",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "main:x",
        "y": "main:y"
      }
    }
  ],
  "labels": [
    {
      "key": "main:y",
      "default": "Costs, revenue",
      "hint": "Vertical axis",
      "panel": "main"
    },
    {
      "key": "main:x",
      "default": "Output",
      "hint": "Horizontal axis",
      "panel": "main"
    },
    {
      "key": "main.dwl",
      "default": "DWL",
      "hint": "Shaded area",
      "panel": "main"
    },
    {
      "key": "main.ar",
      "default": "D = AR",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.mr",
      "default": "MR",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.mc",
      "default": "MC",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.m:y",
      "default": "P_m",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.m:x",
      "default": "Q_m",
      "hint": "Horizontal-axis value",
      "panel": "main"
    },
    {
      "key": "main.pc:y",
      "default": "P_{pc}",
      "hint": "Vertical-axis value",
      "panel": "main"
    },
    {
      "key": "main.pc:x",
      "default": "Q_{pc}",
      "hint": "Horizontal-axis value",
      "panel": "main"
    }
  ],
  "elements": [
    {
      "key": "main.dwl",
      "kind": "area",
      "label": "DWL"
    },
    {
      "key": "main.ar",
      "kind": "curve",
      "label": "D = AR"
    },
    {
      "key": "main.mr",
      "kind": "curve",
      "label": "MR"
    },
    {
      "key": "main.mc",
      "kind": "curve",
      "label": "MC"
    },
    {
      "key": "main.mcmr",
      "kind": "point"
    },
    {
      "key": "main.m",
      "kind": "point"
    },
    {
      "key": "main.pc",
      "kind": "point"
    }
  ],
  "stats": null,
  "example": {
    "template": "monopoly-welfare-loss",
    "params": {
      "mc": "rising",
      "dwl": true,
      "surplus": false,
      "pc": true
    }
  }
}