{
  "id": "natural-monopoly",
  "name": "Natural monopoly and regulation",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Monopoly (HL)",
  "hl": true,
  "description": "Huge economies of scale mean LRAC is still falling where it meets market demand, so one firm can supply the market most cheaply. Regulators may set P = AC (fair return, normal profit) or P = MC (allocatively efficient, but a loss that needs a subsidy).",
  "keywords": [
    "natural monopoly",
    "economies of scale",
    "regulation",
    "marginal cost pricing",
    "average cost pricing",
    "fair return",
    "subsidy",
    "LRAC"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/natural-monopoly",
  "previewUrl": "https://graphs.lectere.com/thumbs/natural-monopoly.svg",
  "editorUrl": "https://graphs.lectere.com/graph/natural-monopoly/",
  "params": [
    {
      "key": "reg",
      "label": "Pricing",
      "default": "none",
      "type": "enum",
      "options": [
        {
          "value": "none",
          "label": "Unregulated (MC = MR)"
        },
        {
          "value": "ac",
          "label": "Regulated: P = AC (fair return)"
        },
        {
          "value": "mc",
          "label": "Regulated: P = MC (socially optimal)"
        },
        {
          "value": "all",
          "label": "Compare all three"
        }
      ]
    },
    {
      "key": "shade",
      "label": "Shade profit / loss",
      "default": true,
      "type": "boolean"
    }
  ],
  "defaults": {
    "reg": "none",
    "shade": 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.profit",
      "default": "Abnormal profit",
      "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.lrac",
      "default": "LRAC",
      "hint": "Curve",
      "panel": "main"
    },
    {
      "key": "main.lrmc",
      "default": "LRMC",
      "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.c:y",
      "default": "C",
      "hint": "Vertical-axis value",
      "panel": "main"
    }
  ],
  "elements": [
    {
      "key": "main.profit",
      "kind": "area",
      "label": "Abnormal profit"
    },
    {
      "key": "main.ar",
      "kind": "curve",
      "label": "D = AR"
    },
    {
      "key": "main.mr",
      "kind": "curve",
      "label": "MR"
    },
    {
      "key": "main.lrac",
      "kind": "curve",
      "label": "LRAC"
    },
    {
      "key": "main.lrmc",
      "kind": "curve",
      "label": "LRMC"
    },
    {
      "key": "main.mcmr",
      "kind": "point"
    },
    {
      "key": "main.m",
      "kind": "point"
    },
    {
      "key": "main.c",
      "kind": "point"
    }
  ],
  "stats": null,
  "example": {
    "template": "natural-monopoly",
    "params": {
      "reg": "none",
      "shade": true
    }
  }
}